The construction of multiple polyethylene (PE) and polypropylene (PP) plants in China was delayed. Industry sources said about 3.25 million tons/year of new polyethylene (PE) capacity was supposed to come online in this year’s third quarter. However, only 52% of them have progressed as scheduled, while the remaining 48% would likely enter service by the fourth quarter or early next year.
Meanwhile, the commissioning of at least six new polypropylene (PP) plants in China is also expected to be postponed by one to six months. These planned units have a combined capacity of 2.2 million tons/year. Market sources said the delays resulted from the COVID-19 pandemic and lower crude oil import quotas, which are expected to lead to raw material shortages.
