In a bid to boost diesel production to ease the shortage in the country, China's state-owned Sinopec has been compelled to reduce production rates at downstream polyethylene, polypropylene and monoethylene glycol plants as per Platts. The company’s MEG production will be reduced by about 10% due to reduced ethylene availability, while various PE and PP lines will be shut for turnarounds during this period.
The rate cuts will affect Sinopec Maoming Company, Sinopec Shanghai Petrochemical Company, Sinopec Zhenhai Refining & Chemical Company and Sinopec Guangzhou Company.
Refiners have started to produce diesel at the expense of naphtha production. With less naphtha available, ethylene and propylene production has been reduced and this, in turn, has led to output cuts of polyethylene and polypropylene. However, low demand for polymers during the last quarter of each year means the production cuts may not leave a huge impact on the polymer markets.
ZRCC will shut its 300,000 tpa high density polyethylene line for about 15 days and 300,000 tpa PP line in early December. Shanghai Petrochemical has shut a 100,000 tpa low density polyethylene line for 28 days of maintenance since November 25, and its two PP lines, with a total capacity of 400,000 tpa since November 15; start up dates have not been fixed. Sinopec's Maoming Company will shut its No. 1 steam cracker, with 380,000 tpa of ethylene, on December 1 for a 36 day turnaround. This will affect its 170,000 tpa No. 1 PP line at the same complex, which will also be taken offline on the same day. The company's 360,000 tpa LDPE line will also be shut November 26 for 41 days of maintenance, while its 220,000 tpa linear low density polyethylene line will be shut on December 1. Sinopec Guangzhou is expected to shut its steam cracker and its 140,000 tpa PP unit late November for 40 days of maintenance.
29-Nov-10 
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