Coal shortage forces two Chinese coal-based PP plants to shut down

According to market sources, at least two coal-based PP producers in China have declared an emergency shutdown in the previous week as a result of a severe coal shortage in the country.

Affected plants included the No.1 coal-based PP line belong to Zhongmei Yulin Energy Co Ltd in Yulin that have an annual capacity of 300,000 tons/year. Besides, Datang Duolun Coal Chemical Corporation’s 230,000 tons/year No. 1 PP line in Inner Mongolia is also off-line. 

Players said that the restart of these plants could be within this week or depending on the availability of coal supply. 

As reported earlier, coal output in China has been falling over the past couple of months due to the strict safety inspections in Shanxi and Shaanxi – major coal producers in the country and lower import arrivals. The inspection is expected to last until the end of January, which could significantly drawdown coal stockpile in the country and affect coal-to-olefins (CTO) productions.