Typhoon Haikui stalls PE, PP distribution in east China

08 August 2012 09:08  [Source: ICIS news]

ICIS (SINGAPORE)--Typhoon Haikui has halted the distribution of polyethylene (PE) and polypropylene (PP) in parts of east China, local resin distributors said.

The typhoon struck Shanghai on 8 August, causing flights in and out of the city to be grounded and leading to mass evacuations in Shanghai and Zhejiang province, according to local media reports.

Local producer Shaoxing Sanyuan had already stopped its 500,000 tonne/year PP plant in Zhejiang on 3 August because of a disruption in its propylene feedstock, a company source said.

A number of propylene cargoes imported by Shaoxing Sanyuan are stuck in port because of the typhoon, the source said.

Two other producers in Zhejiang, Sinopec Zhenhai Refining & Chemical Co (ZRCC) and Formosa Plastics Corp, were operating their PE and PP plants normally despite the typhoon, company sources said.

Shanghai Petrochemical’s PE and PP facilities in Shanghai were not affected by the typhoon, local distributors said.

Shanghai Petrochemical was not immediately available for comment.

Sinopec’s east China sales office has limited its sales of certain PE and PP grades because of low inventory, saying it could not replenish stocks because of disruptions to transportation caused by the typhoon, local distributors said.

Some plastics converters in east China said their production was not affected because they had prepared at least three days of resin stocks in anticipation of the typhoon.

East China’s PE capacity accounted for about 22% of China’s total capacity last year, according to ICIS-Chemease. The respective figure for PP capacity was 24%.

Additional reporting by Angie Li, Chow Bee Lin

By: Jiao Jiao Yu

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