With the end of overhauls of several large-sized producers, Q4 PE output will reach the annual peak of quarterly output in 2023 on the back of fewer production losses.
Source: OilChem
China's PE output is estimated to be 7.45 million tonnes or so in Q4, up 7.05% compared with Q3. Moreover, PE output in H2 2023 is estimated to be 14.41 million tonnes, up 4.87% compared with 13.74 million tonnes in H1 2023.
Source: OilChem
As Ningxia Baofeng Energy Group Phase III put its 400,000 tonnes/year HDPE unit into production in September, China's newly-added PE capacity reaches 2.6 million t/y in 2023. The capacity rise steadily pushes up PE output, and PE output is estimated to be 28.14 million tonnes in 2023, up 11.16% year on year. In the wake of fewer maintenance, PE capacity utilization will mount up in Q4.
Source: OilChem
Newly-added PE capacities were mainly put into production in Q1, and their production loads remained relatively low at the beginning of commission. In addition, due to the intensive maintenance in Q2, PE capacity utilization rate tended down in H1 2023. Along with the stable operation of new capacities in H2 2023 and the fewer maintenance, the PE capacity utilization rate steadily mounted up, and it might rally to 87.5% or so in December. China's overall PE capacity utilization is estimated to be roughly 85% in 2023, up 2.5 percentage points year on year.
Written by Ariel Guo, gq@oilchem.net
Edited by Navy Liu, liuchuanjun@mysteel.com
