Can polyolefins take the opportunity to rebound when the maintenance storm hits?

According to the currently announced maintenance plan, the PE maintenance in August involved a production capacity of 75 million tons, which was close to 1/10 of the total production capaci.

Similarly, PP will also enter the peak maintenance seas.

In addition, the maintenance not only reduced the overall supply, but also made the supply of PP standard products continue to be tig.

The production capacity is in doubt, and the short-term impact is limited

Domestically, polyolefins will continue to expand in 201 The growth rate of PP supply will exceed 9%, and PE will exceed

Inventory levels are moderate, expected to ease in the future

Since mid-June, polyolefin inventories have fallen significant.

Although the downstream terminals have been maintaining low inventory operations, except for just-needed purchases, the overall willingness to receive goods is low, but with the arrival of the peak maintenance season in August, petrochemical inventories are expected to continue to deplete, and the inventory pressure in the third quarter is relatively sma.

The demand for shed film gradually started, and the demand for PP remained stable

In terms of PE demand, the start of agricultural film production increased slightly in Ju.

In terms of PP demand, the overall change was not large, among which the output of home appliances increased steadi.

Conclusion and Action

After entering August, the overhaul of equipment has gradually increased, which not only reduces the overall supply, but also makes the supply of PP standard products continue to be tig.