Indian petrochemical producers have shut their plants or reduced operating rates as demand weakens amid the country’s nationwide lockdown to curb the coronavirus spread, which was recently extended to May 3. The lockdown has created transportation hurdles and labour shortages which disrupted plant operations. Finished product demand also diminishes as 1.3 billion Indians are told to stay at home.
Market sources informed SSESSMENTS.COM that state-owned GAIL had shut its 400,000 tons/year PE plant in Pata due to demand issues. When the lockdown began on March 25, GAIL also shut its 210,000 tons/year HDPE/LLDPE swing unit. The company, however, maintains its LPG production to meet the rising demand for cooking gas.
Previously SSESSMENTS.COM reported that fellow state-owned company IOCL would likely keep its petrochemical units in Paradip shut amid the lockdown. IOCL’s Paradip complex can produce up to 900,000 tons/year of propylene, 200,000 tons/year of ethylene, and 700,000 tons/year of PP. The company is now considering to shut its 800,000 tons/year cracker at Panipat in Haryana.
MRPL also put its 440,000 tons/year PP plant at Mangalore offline. Market sources also reported that HPL shut its cracker and polymer plants. BPCL has reportedly cut operating rates at its petrochemical units in Mumbai and Kochi by more than two thirds. Meanwhile, OPAL is running its HDPE and LLDPE production lines at Dahej in Gujarat at reduced rates.
It remains unclear whether Reliance Industries is also reducing its operating rates. The company operates crackers as well as downstream polymer, PX, PTA, and MEG production lines.
