Plastic Industry Updates & Resources

【Wanhua Chemical Yantai Industrial Park PDH Unit Shut Down for Maintenance】Wanhua Chemical announced on March 18 that, according to the characteristics of chemical production processes, to ensure the safe and efficient operation of production facilities, according to the annual maintenance plan, the 750,000-ton-per-year PDH unit in the Yantai Industrial Park will start a shutdown for maintenance on March 22, 2026, and the maintenance is expected to last about 30 days. According to the overall balance of the park, the downstream PO/AE integrated facilities will adjust their production capacity. The company will strive to ensure the stable supply to downstream customers. This shutdown for maintenance is a routine inspection according to the annual plan, and it will not have a significant impact on the company's production and operation.

【Wanhua Chemical Yantai Industrial Park PDH Unit Shutdown for Maintenance】Wanhua Chemical announced on March 18 that, according to the characteristics of chemical production processes, to ensure the safe and efficient operation of production facilities, the 750,000 tons per year PDH unit at the Yantai Industrial Park will be shut down for maintenance starting on March 22, 2026, with an estimated maintenance period of about 30 days.

【PP Pipe Materials: Multiple Favorable Factors Converge, Prices Fluctuate Upward】  Since March 2026, the PP pipe material market has experienced a fluctuating upward trend. On March 17, the price of hot water pipe materials in East China reached 9,650 yuan/ton, an increase of 29.97% from the beginning of the month. Affected by geopolitical conflicts, crude oil and propylene prices have continued to rise, providing strong cost support. Meanwhile, the supply of pipe materials has been tight, with petrochemical companies mainly selling directly, and imported resources decreasing, leading to a tight supply situation in the distribution sector, which also provides strong support. Although product prices have lagged in following the upward trend, factories have limited acceptance of high raw material prices. However, as the low-price inventory from earlier is being consumed, the release of immediate demand may provide temporary support to the market. It is expected that PP pipe materials will remain in a strong fluctuating trend before the end of the month.

【Japan Auto Industry Association Chair: Middle East Situation Affects Automotive Logistics and Materials Procurement】The chairman of the Japan Automobile Manufacturers Association stated that the situation in the Middle East is gradually affecting the automotive industry's logistics and material procurement.

【Middle East Conflict Escalates Naphtha Supply Concerns, Halving Japan’s Ethylene Plants’ Output In Two Weeks】March 19 (Xinhua) — Several Japanese petrochemical companies have recently announced production cuts, citing concerns that the Middle East conflict could tighten the supply of naphtha—a key raw material for plastic production—potentially dampening industrial output and exerting pressure on the profitability of multiple sectors, including food and technology. Idemitsu Kosan Co., Ltd., headquartered in Tokyo, recently announced a production cut, becoming the latest company to adjust its capacity amid expectations of declining naphtha supply. The company will reduce ethylene production—derived from naphtha—at its facilities in Chiba and Tokuyama. Earlier, Mitsubishi Chemical, Mitsui Chemicals, and Cosmo Energy Holdings had already initiated production cuts. Within just two weeks of the outbreak of the Iran war, six of Japan’s twelve ethylene plants have begun scaling back capacity.