PU daily, Shanghai
On July 16, the domestic PO market rose significantly. The fluctuation in prices for propylene and liquid chlorine has little impact on PO price due to the fat profit of PO. Some manufacturers shut plants for maintenance or lower production loads. This, coupled with limited supply of imported goods, leads to tight spot supply. The manufacturers receive fairly big number of orders, though polyether polyols manufacturers are cautious about making purchase. thus they significantly increase their quotes. The prevailing quotes in Shandong and North China markets stand at RMB 17,000-17,500/ton EXW in bulk in cash. Quotes in East China market stand at RMB 17,000-17,200/ton DEL in bulk in cash, with quotes for confirmed orders negotiable. goods sold from Northeast China to neighbouring regions are delivered by the manufacturers.
The following table shows the status of PO facilities in China.
| Manufacturer | Location | Production capacity (in 10,000 tons/year) | Status of the plant |
| Xin Yue Chemical | Binzhou, Shandong | 35 | Shut down due to power failure on July 12 |
| CNOOC and Shell Petrochemicals Company | Huizhou, Guangdong | 62 | Running at production load of 90% |
| Jilin Shenhua | Jilin | 30 | Running at production load of 30% |
| Ningbo ZRCC Lyondell Chemical | Ningbo, Zhejiang | 28.5 | The plant was shut down for maintenance on July 13 and is running at production load of 20% |
| Befar Group | Binzhou, Shandong | 28 | Running at production load of 70% |
| Wanhua Chemical (Yantai) | Yantai, Shandong | 24 | Operating at full capacity |
| Shandong Jinling Chemical | Dongying, Shandong | 16 | Operating at production load of 90% |
| Nanjing Jinling Huntsman New Material | Nanjing, Jiangsu | 24 | Operating at full capacity |
| Shandong Sanyue Chemical | Binzhou, Shandong | 32 | Running at production load of 50% |
| Tianjin Dagu Chemical | Tianjin | 15 | Running at production load of 70% |
| Taixing Chemical | Taizhou, Jiangsu | 12 | Operating at production load of 80% |
| Hangjin Technology (formerly known as Fangda Jinhua Chemical) | Huludao, Liaoning | 12 | Running at 70% production load (shut on July 14 but restarted on July 15) |
| Sinochem Quanzhou Petrochemical | Quanzhou, Fujian | 20 | Operating at full capacity |
| Shandong Daze Chemical | Heze, Shandong | 10 | A 50k t/a plant is running at 70% operating rate |
| Sinopec Changling Petrochemical | Yueyang, Hunan | 10 | Running at 90% production load |
| Huatai Chemical | Dongying, Shandong | 8 | Running at 90% operating rate |
| Shandong Shida Shenghua Chemical | Dongying, Shandong | 7 | Operating at full capacity |
| Zhonghai Fine Chemical | Dongying, Shandong | 6.2 | Running at 60% operating rate |
| Fujian Meizhouwan Chlor-alkali Industry | Quanzhou, Fujian | 5 | Operating at full capacity |
Market forecast: Last week, due to the impact of heavy rain in North China, Ningbo ZRCC Lyondell Chemical, Xin Yue Chemical, Shandong Sanyue Chemical and Hangjin Technology shut their PO plants for maintenance or lowered their production loads. And Jilin Shenhua’s production load stayed at around 30%. As a result of this and stable imports, the supply became tight and PO price increased by RMB 2,100-2,500/ton within the week. Temporarily, the demand can still support increase in PO price. Presently, polyether polyols manufacturers and end users have low inventories as they deliver orders. With little inventory pressure, PO manufacturers are keen to increase quotes. It is expected that the PO price will continue to rise this week. Attention should be paid to the PO inventory levels and orders received by downstream manufacturers.
Post time: Jul-21-2021