Zhongjing Petrochemical encountered unexpected technical issues, leading to the shutdown of four PP production lines in Fujian, China, late last week, according to market sources. Restoration efforts are underway, though delays are anticipated.
Market participants are closely monitoring the company’s decision to prioritise LLDPE over HDPE at startup, given the continued weakness in China’s domestic LLDPE market. Concerns over capacity expansions have persisted since December 2024,
This comes on top of several indefinite shutdowns driven by margin pressures, further tightening supply. While these maintenance activities may offer short-term support, the broader market continues to grapple with persistent demand weakness.