Multiple domestic maintenance devices restart and improve polyethylene resource supply
2023/8/21
From the perspective of LDPE, the estimated production of LDPE in China in August increased by 19.91% compared to July. The maintenance facilities in Daqing and Lanhua have gradually restarted, and the comprehensive supply of LDPE has significantly increased. From a variety perspective, the supply of LDPE film, heavy packaging, coating, and injection molding has all increased during the month, with an increase of approximately 25300 tons for LDPE film, 12800 tons for heavy packaging, 3600 tons for coating, and 1000 tons for injection molding; However, the pre arranged production of LDPE cables has slightly decreased, with a reduction of about 3100 tons. Other specialized and transitional materials are relatively small, and the change in production is limited compared to the previous month.
From the perspective of LLDPE, the estimated production of LLDPE in China in August increased by 0.19% compared to July. Early maintenance devices such as Daqing and Lanhua were planned to restart, but at the same time, the Bora device entered a major overhaul, and some full density devices were phased in to produce HDPE. The increase in LLDPE production during the month was limited. From a variety perspective, the monthly increment is mainly concentrated in LLDPE film (MI=1), LLDPE film (MI=2, including opening agent), and metallocene products. Among them, the increment of LLDPE film (MI=1) is about 25800 tons, the increment of LLDPE film (MI=2, including opening agent) is about 15900 tons, and the increment of metallocene is about 20300 tons; However, the production of LLDPE film (MI=2, without opening agent), LLDPE injection molding, and some HDPE special materials has decreased, with LLDPE film (MI=2, without opening agent) showing the most significant reduction of about 44600 tons, LLDPE injection molding reducing about 13000 tons, and other special LLDPE reducing about 4200 tons.
From the perspective of HDPE, the estimated production of HDPE in China in August increased by 10.17% compared to July. During the month, the Baolai plant entered a major overhaul, but production was resumed in units such as Daqing, Lanhua, Lianyungang, and SECCO, with full density units such as Yangzi producing HDPE in stages. The monthly HDPE production significantly increased. In terms of variety, except for HDPE low melt injection molding and HDPE film, the supply of other products increased during the month. HDPE pipe production increased by about 90400 tons, followed by HDPE wire drawing with an increase of about 32100 tons, CPE production increased by about 8300 tons, and other special materials such as HDPE bottle caps also showed a significant increase. Although the production of large hollow pipes and cables also increased, the increase was limited; In terms of production reduction, the HDPE low melt injection molding ring ratio has decreased by approximately 56800 tons, and the HDPE film has decreased by approximately 27500 tons.
In August, the domestic PE production continued to increase month on month, with downstream agricultural film orders gradually accumulating. The construction of packaging films also saw a slight increase, with both supply and demand increasing. The industry relied on various variety resources and demand follow-up to compile quotations. During the month, the production of LLDPE film (MI=2, excluding opening agents), HDPE low melt injection molding, and HDPE film material scheduling were tight, and prices were relatively firm.
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