MOSCOW (MRC) -- Zhongtian Hechuang Co Ltd, part of Sinopec, has been operating its both polypropylene (PP) and polyethylene (PE) plants at Inner Mongolia site at 100% capacity utilisation since last week, according to CommoPlast with reference to a source closed to the company.
Actually, the company reduced as much as 15% production rate of both its PP and PE plants last week because of red alert on sand storm at Inner Mongolia side, market sources said,
A source closed to the company informed that virtually the plants had been running at 115% previously, with current reduction rate of 15% to 100%, the production rate considering still on full production hence the impact toward supply is minor at the moment.
These plants with the capacity of 350,000 tons/year of PP, 300,000 tons/yea ofr high density polyethylene (HDPE) and 370,000 tons/year of low density (LDPE) plants are located in Erdos, Inner Mongolia, China.
As MRC informed earlier, in mid-January, 2021, Wood secured a contract valued at over USD120 million with Sinopec Hainan Refining and Chemical Limited Company (Sinopec) to provide engineering, procurement and construction (EPC) services to expand its refinery development in the Hainan Free Trade Zone (FTZ) in South China.
Once completed, the ethylene renovation and expansion project will produce up to one million tonnes of ethylene derivatives and refined oil on an annual basis and is expected to boost economic growth in China’s downstream sector by more than 100 billion yuan (USD14.1 billion). Output from the Hainan FTZ will serve ethylene demand across China and globally.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
Zhongtian Hechuang Energy is a joint venture between Sinopec (38.75%), China Coal Group (38.75%), Shenergy Group Co., Ltd. (12.5%), and Inner Mongolia Manshi Coal Group (10%).
MRC