11 June, 2018
China’s PP market is set for a new wave of maintenance shutdowns for the rest of 2018, market sources reported. Several PP producers in the country already have ongoing shutdowns, which are mostly slated to end in June.
Along with strong propylene prices in Asia, the scheduled shutdowns in the April-June period have supported a mostly firm sentiment in China’s local PP market for the past couple of months. “A new round of turnarounds might help PP prices maintain a stable to firm trend in the near term despite the fact that demand is not supportive,” a few traders opined.
Shaanxi Yanchang Coal Yulin Energy and Chemical Company shut its 600,000 tons/year PP plant on May 30. The plant is expected to resume operations on June 29. Fujian Refining & Petrochemical Company Limited (FREP) is planning a shutdown at its 220,000 tons/year PP plant between June 11 and 15. Two other Chinese producers, North Huajin Chemical and Ningxia Baofeng Energy, will also conduct maintenance shutdowns at their PP plants for one month in the June-July period.
Ningxia Baofeng Energy will shut its 300,000 tons/year PP plant at the beginning of June for 45 days while Shenhua Xinjiang also plans a 45-day shutdown at its 450,000 tons/year plant starting from July 1. CNPC Hu He Hao Te Petrochemical’s PP plant is slated to be shut on June 25. The company is planning to resume its operations on August 25.
Another producer, Petrochina Daqing Petrochemical is planning to conduct a shutdown at its 100,000 tons/year PP plant from July 30 to September 8. Between early July and mid-September, CNPC Hua Bei Petrochemical and Sinopec Jingmen Petrochemical are also planning to shut their plants for maintenance. Sinopec Wuhan Petrochemical will shut its plant for 10 days in early September.
Heading to October, Sinopec Shanghai Secco plans to shut its 260,000 tons /year PP plant in early month for maintenance. Sinopec Shanghai Petrochemical will also have maintenance shutdown at its PP plant, with a capacity of 140,000 tons/year starting from October 8 until November 26.