April Polypropylene Losses Hit Record High as Supply Gap Widens

April is the concentrated season for polypropylene plant maintenance, coupled with geopolitical factors, high costs, and weak demand. This month, the loss of domestic polypropylene plant production due to maintenance reached a new high, increasing to 1.3103 million tons, an increase of 0.2284 million tons from the previous month.

Data source: Jinlianchuang

By region, maintenance activities this month were mainly concentrated in North China, East China, South China, and Northeast China. The North China region continued to account for the largest share of maintenance-related output losses nationwide, at 35.99%. Key facilities currently offline include Wanhua Chemical, Hongrun Petrochemical, Qilu Petrochemical, Yanshan Petrochemical Unit I, Sanju, Shijiazhuang Refinery, and Tianjin Bohua Chemical. Newly added shutdowns include Jingbo Polyolefins Line II and Jinneng Technology Line II. The East China region accounted for 27.16% of national maintenance losses; in addition to facilities already under maintenance, new shutdowns this month include Zhenhai Refining & Chemical Line III, Shanghai SECCO, and Zhong’an United. The South China region’s share rose to 21.72% this month, with newly added maintenance activities at Zhongjing Petrochemical Phase I Line II, Sinochem Quanzhou, Guangdong Juzhengyuan Phase I, Donghua Energy Maoming, and Guangxi Hongyi. The Northeast China region accounted for 10.38% of national maintenance losses, with ongoing shutdowns at Haiguo Longyou, Jinxi Petrochemical, Beifang Huajin, and Dalian Organic Chemical; newly added shutdowns include Dalian Hengli and Liaoyang Petrochemical. Moreover, many facilities that entered maintenance earlier this month have remained offline for extended periods, and the number of newly added maintenance facilities has increased. Consequently, the total maintenance-related output loss this month continued to rise compared to last month.

Polypropylene maintenance losses have surged, causing the industry’s operating rate to drop to a record low—briefly falling below 60%. According to information available, multiple units—including those at Daqing Petrochemical, Shenhua Ningxia Coal, Zhongtian Hechuang, and Yangzi Petrochemical—are scheduled for maintenance in May. Moreover, currently idled units have no near-term plans for restart. Consequently, overall maintenance losses are expected to remain elevated throughout May. Looking ahead, maintenance activities during the spring inspection season in Q2, coupled with cost pressures and persistently weak end-user demand, are expected to keep maintenance losses at high levels, further widening the supply deficit.