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In China, there is a series of PP plant to be taken off-stream for maintenance work from mid March till June 2016, from which many players are raising the concern over the supply condition during this period.

Sinopec-SK Petrochemical, Zhenhai Petrochemical and Shenhua Baotou will simultaneously shutdown their PP lines in April for approximate 45 days. Meanwhile, Yanshan Petrochemical would shut all three PP lines with total capacity of 470,000 ton/year for about 40-45 days starting May 2016. Detailed scheduled shutdown at Chinese PP plants is shown in the following table.

A trader commented, “We do expect the supply condition to remain tight in the near term with the support from limited international cargoes. However, May and June is traditionally weak season for PP applications, hence we think this tightness might sustain till ChinaPlast week and would gradually retreat as slower demand balance with limited supply.”

Another buyer added, “We think the impact from these shutdown will not be too significant bearing in mind that there will be five more coal based PP plant with total capacity 1.85 million tons/year come online during the same period. This would balance up the production loss resulted from the schedule shutdown. Demand in local market has turned sour this week due to weaker futures trades are psychologically affecting the market.”

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