PP Supply-Demand Imbalance Is Unobvious in the Short Run

SCI99

2019-04-16

PP Supply-Demand Imbalance Is Unobvious in the Short RunShandong Indecreased Slightly

Preface

There will be limited turnaround plans in H1 April, which will increase successively from H2 April to May. The newly added units’ commissioning process is slower than expectation. Thus, the supply-demand imbalance will be eased, so PP market prices will not have downside pressure in the near term.

Table 1 China PP Units under Maintenance or Planned to Undergo Maintenance

The output loss volume in March was around 1,920kt, and capacity loss was around 158.9kt/a, up 10% from February. The output under the impact of maintenance will remain low in April, so the PP supply volume will increase by around 20% from March. However, from H2 April, PP producers will arrange more maintenance, such as Sinopec Qilu Company, Dalian West Pacific Petrochemical, PetroChina Lanzhou Petrochemical and Sinopec Luoyang Company. And about 760kt/a capacity is involved. Besides, 760kt/a units remain in long-term shutdown, so the total capacity involved is 1,520kt/a.

Table 2 China Newly Added PP Units in March and April

According to SCI, there will be 4,750kt/a units to be put into operation in 2019. And that will appear intensively from May to July. Q2 belongs to the peak season for the commissioning of PP units, but there will be many turnaround plans during that time, thus, the supply pressure will not be high. The newly added units will concentrate in Northwest China, Southwest China, East China and South China.

……

More detailed information, please click "Read more".