China’s Shaanxi Yanchang Petroleum starts up PE, PP units

SINGAPORE (ICIS)–China’s Shaanxi Yanchang Petroleum Group started up its new high density polyethylene (HDPE) and polypropylene (PP) plants this week, a company source said on Wednesday.

The 300,000 tonne/year HDPE unit in Shaanxi province came on stream on 1 July, while the PP plant at the site with the same capacity began production on 30 June, the source said.

Shaanxi Yanchang Petroleum started producing flat yarn (raffia) grade at the new PP unit on 1 July, while HDPE injection grade will be produced at the HDPE unit on 3 July, the source said.

The company also has a new 300,000 tonne/year linear low density PE (LLDPE) unit and another 300,000 tonne/year PP unit  at the site that are expected to start production on 10 July, the source said.

Shaanxi Yanchang’s upstream 600,000 tonne/year methanol-to-olefins (MTO) plant started production on 27 June, the company source said.

PE and PP prices may be dampened given the huge new supply coming into the market, industry sources said.