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Production Cuts and Increased Shutdowns/Production Switching in North China’s PE Producers
Production Cuts and Increased Shutdowns/Production Switching in North China’s PE Producers
Recently, polyethylene (PE) production enterprises in North China have experienced concentrated maintenance and production reductions, impacting the regional supply structure.
Qilu Petrochemical, a major production base under Sinopec, has its low-density polyethylene (HDPE) unit shut down, and its two full-density polyethylene (FDPE) production lines remain shut down. Wanhua Chemical has recently scheduled maintenance on multiple units, with its HDPE unit shut down since early April, its high-density polyethylene (LDPE) production line planned for a 10-day shutdown in mid-to-late May, and its FDPE unit planned for a one-month shutdown starting in late April. These arrangements have affected the supply of LDPE and HDPE in the region to some extent.
Joint venture Yulong Petrochemical’s production is currently relatively stable. Its two FDPE units produce grades 7050 and 7047 respectively, and its HDPE units produce 5000S and 5502S. However, its LDPE/EVA and ultra-high molecular weight polyethylene (UHMWPE) units remain shut down. Sinopec-SABIC and Sinopec-UK Petrochemical’s HDPE units have recently entered maintenance shutdowns, further exacerbating expectations of tighter HDPE supply.
Some local enterprises in Shouguang and Heze, Shandong Province, have maintained stable production, mainly producing CPE and the general-purpose grade 35BN, providing a certain basic supply to the market. Tianjin Petrochemical’s LLDPE unit is scheduled to shut down soon; its impact on linear polyethylene spot prices needs to be monitored.
Overall, PE unit maintenance shutdowns in North China have been relatively frequent recently, especially for HDPE and some LDPE, leading to a tightening supply. Going forward, continued monitoring of enterprise resumption progress and downstream demand is crucial, as these will significantly impact regional supply-demand balance and price trends.
