Intensive MA to Ease PP Supply Pressure in South China
Introduction: The 400kt/a PP unit at PetroChina Qinzhou Petrochemical is projected to be put into operation in October 2025. However, three lines at Sinopec Guangzhou Company and JPP line at Sinopec Hainan Refining & Chemical will probably undergo maintenance (MA) in October, offsetting some supply pressure aroused by capacity expansion. Thus, the PP supply pressure in South China may be alleviated.
In September, PP market prices still performed poorly, and prices in East China, North China and South China moved sideways after falling. As of September 26, the closing price of raffia dropped by 2.32% from early September to RMB 6,730/mt in North China; that decreased by 1.89% to RMB 6,750/mt in East China; that fell by 2.53% to RMB 6,740/mt in South China. Generally, mainstream PP prices inched down in September, and the price decline was severe in South China.
In September, the main reason why the decline in PP prices in South China was larger than that in the other two regions was the different impacts from regional supply. During the month, unplanned maintenance of units in North China and South China increased, and presales by some producers were substantial. This kept the spot PP supply pressure in these regions under control, providing strong support for PP prices. As a result, the decrease in PP prices in East China and North China was less pronounced than that in South China.
Oct 2025 China PP Unit Maintenance Plan
Remarks: RS = restart, SD = shutdown
In the future, the 400kt/a PP unit at PetroChina Guangxi Petrochemical (Phase II) is planned to come on stream officially on October 18. It has had a test run on September 19, and it is projected to run based on outsourced feedstock at the end of September. However, there may be maintenance arrangements for three lines at Sinopec Guangzhou Company and JPP line at Sinopec Hainan Refining & Chemical in South China, and the capacity involved reached 600kt/a. Extensive unit maintenance is likely to ease the supply pressure in October.
In October, PP market prices will be mainly driven by supply-demand fundamentals. Downstream enterprises will probably purchase PP on a just-needed basis, underpinning the PP market somewhat. The expected alleviation of supply pressure in South China may promote PP market prices there to rebound.
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