Jan 2025 Braces for Scheduled PE Unit Maintenance
Introduction: in December 2024, China’s PE output reached 2,386.6kt, marking an increase of 137.1kt from last month, up by 6.09% MoM, but down by 3.2% YoY. For January 2025, the predicted loss in PE output due to maintenance is estimated at 204.7kt, a decrease of 151.8kt from December 2024. Considering the full output release from Inner Mongolia Baofeng Coal-Based New Materials and Yulong Island Refining and Chemical Integration Project along with the commissioning of the new unit at Wanhua Chemical Group, it is anticipated that PE output in January 2025 may rise.
China’s PE Output stood at 2,386.6kt in December 2024, up 137.1kt or a 6.09% MoM but down 3.2% YoY. The maintenance-induced output loss of PE saw a reduction of roughly 85.8kt MoM. Additionally, with INEOS Sinopec Tianjin Petrochemicals’ PE unit operating smoothly and normalizing production, the supply of Chinese-made PE increased compared to the previous month. However, when examining the operating rate, there was a decline of 2.22 percentage points in December, down to 75.02%, primarily as a result of Inner Mongolia Baofeng and Yulong commencing operations in the latter half of the month, yet not releasing full output, which in turn lowered the overall operating rate.
On a regional level, all major regions saw an uptrend in PE output in December. Notably, South China, North China, and Northwest China showed significant increases of 50.6kt, 38.6kt, and 33.6kt, respectively. Following them, East China and Northeast China posted output rises of 9.8kt and 3.6kt respectively. The smallest growth was observed in Central China and Southwest China, with both registering an incremental 0.5kt. The increase in output was mainly influenced by the reduced number of units being involved in maintenance and the output release from newly added units.
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