China's PE industry to face concentrated turnarounds in Q4

China' s PE industry will eye a wave of unit maintenance in the fourth quarter, as higher costs together with weaker demand will force some producers have to shut units down. Coupled with the slower-than-expected pace of new capacity commissioning, effective domestic PE supply is likely to fall below earlier market expectations.

The off-line polyethylene (PE) units will increase significantly in the fourth quarter, with October emerging as a peak month. Total PE maintenance losses for October are estimated at 710,000 tonnes, an increase of 50,000 tonnes from September. These shutdowns are primarily cost-driven, with high-density polyethylene (HDPE) units accounting for