China’s Shenhua Baotou Chemical to shut PE, PP units in June

28 May 2013 09:47  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Shenhua Baotou Coal Chemical plans to shut its year polyethylene (PE) and polypropylene (PP) plants in Inner Mongolia for a month-long maintenance, industry sources said on Tuesday.

The plants, each with a 300,000 tonne/year capacity, will be down from 2 June to 5 July, the sources said.

The shutdown will lead to tighter supply of less expensive coal-based polyolefins in the market, and could push domestic PP and PE prices higher, according to local distributors.

Shenhua Baotou produces polyolefins using coal as basic raw material instead of oil. Its PE plant mainly produces linear low density PE (LLDPE) and high density PE (HDPE) injection grades, while its PP plant mainly produces yarn and copolymer grades.

The coal-to-olefins facilities have continued to run in spite of a government order issued to the company in January requiring immediate cessation of operations.

By: Lizzie Yu

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