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Sinopec shuts PE/PP lines

November 29/2010

(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 companys 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.


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