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(Plastemart) -- In a bid to boost
diesel production to ease the shortage in the country, China's state-owned
Sinopec has been compelled to reduce production rates at downstream polyethylene, polypropylene and monoethylene glycol plants, as per
Platts.
The company’s MEG production will be reduced by about 10% due to reduced
ethylene availability, while various PE and PP lines
will be shut for turnarounds during this period.
The rate cuts will affect Sinopec Maoming Company, Sinopec Shanghai
Petrochemical Company, Sinopec Zhenhai Refining & Chemical Company and
Sinopec Guangzhou Company.
Refiners have started to produce diesel at the expense of naphtha
production. With less naphtha available, ethylene and propylene production has been reduced and this, in
turn, has led to output cuts of polyethylene and polypropylene. However, low
demand for polymers during the last quarter of each year means the production
cuts may not leave a huge impact on the polymer markets.
mrcplast.com
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