August 02, 2024 – The domestic polyethylene market has recently undergone a series of significant transformations, with not only an increase in production capacity but also a concentrated restart of previously overhauled plants, ushering in new expectations for incremental supply of domestically produced polyethylene.
At the end of July, domestic polyethylene production capacity scaled to a new peak of 31.11 million tons per annum, primarily fueled by the successful execution of Xinjiang Tianli High-tech’s EVA conversion to high-pressure 1846H project. This project boasts an annual capacity of 200,000 tons, elevating domestic LDPE production capacity to 3.535 million tons per annum.
According to insights from Color Masterbatch Industry Network, early this week, multiple domestic petrochemical companies’ overhauled plants resumed operations, including Lanzhou Yulin, Zhongtian Hechuang, Qilu Petrochemical, Yangzi BASF, and Shenhua Xinjiang, together accounting for a total capacity of 2.08 million tons per annum. Notably, high-pressure capacity dominates this restart, amounting to 980,000 tons per annum, while linear and low-pressure capacities are respectively 700,000 tons and 400,000 tons per annum. Furthermore, in early August, the low-pressure units of Baofeng Phase III and a certain enterprise in Heze, Shandong, are scheduled to resume operations. Judging from the supply varieties of recently restarted plants, high-pressure, linear, and low-pressure piping materials are the primary focuses.
Looking ahead to August, domestic polyethylene supply is poised for further enhancement. Although Shanghai Petrochemical’s #1 high-pressure unit, Jilin Petrochemical’s low-pressure and linear units, and Dushanzi Petrochemical’s old full-density unit are scheduled for maintenance in August, the overall supply in the domestic polyethylene market will persist in increasing, presenting new development opportunities for the industry.