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Sinopec's petchem cuts to affect its PE output |
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Sinopec subisidiaries have cut back their polyethylene (PE) production in line with a reduction in the company's petrochemical production to increase its supply of refined oil, sources at the producer’s subsidiaries said on Tuesday.
Qilu Petrochemical in Shangdong province reduced output at its 140,000 tonne/year linear low density PE (LLDPE) unit to 11tonnes/hr from 16tonnes/hr on 2 June, resulting in an estimated loss of 3,600 tonnes LLDPE in June, a company source said.
The company was also planning to cut production at its 140,000/tonne/year high density PE (HDPE) plant in the next few days.
Maoming Petrochemical, another Sinopec subsidiary in Guangdong province, was slated to cut ethylene production by around 10,000 tonnes in June, which would lead to a loss of 3,000 tonnes of HDPE, 2,000 tonnes LDPE and 4,000 tonnes of polypropylene (PP) in June, a source said.
Maoming had also shut down its 200,000tonne/year LDPE facility on Monday.
Guangzhou Petrochemical in Guangzhou province also planned to shut down its LLDPE plant in the next few days, said a company source but did not provide further details.
Yangzi Petrochemical and Shanghai Petrochemical in east China would also cut operating rates, but company sources could not provide details of the polymer losses the companies could suffer.
Traders believed that this cut in production would tighten polymer supply further and and raise prices, and were in no hurry to sell their cargoes. |
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