Influence by cost suppression, China polyethylene capacity utilization rate low

In 2022, affected by geopolitics and other factors, the price of crude oil was at a high level, hitting a record high in recent years. Production enterprises suffered serious profit losses and were forced to reduce load or stop for maintenance to avoid risks. In April, the utilization rate of production capacity hit a record low.

The monthly average capacity utilization rate of PE in June was 79.69%, +0.38% month-on-month and -7.86% year-on-year;  The average capacity utilization rate from January to June was 82.82%, -6.24% year-on-year.

At the end of Februry, the standoff began to Ukraine, brush the crude oil prices high, the march even out of $130 a barrel of crude oil prices, but the domestic public health events began to relapse, goods transportation is blocked, the downstream demand purchasing co., LTD., prices are lower, production enterprise loss serious, was forced to drop the load or parking overhaul plan in advance, 4 minimum capacity utilization, averaged 73.22%,  The lowest diurnal point is 66.63%.

According to the nature of enterprises, the utilization rate of 2022 capacity is lower than that of 2021 to varying degrees, among which the decline of Sinopec is more obvious.

Sinopec’s monthly average capacity utilization rate in June was 66.57%, +0.4% month-on-month and -21.97% year-on-year;  From January to June, the capacity utilization rate was 74.61%, year-on-year -9.22%.  Affected by the Beijing Olympics, 1-2 month production enterprise of north China itself is the requirement of the load down, crude oil high in March, the profit loss serious, enterprises into the drive, and maoming petrochemical, Shanghai secco, Shanghai geumbi, yangzi petrochemical, and other enterprises begin to repair, capacity utilization has fallen lower and lower, safety production month in June, Shanghai petrochemical device sudden accident,  Production enterprises pay attention to safety production, temporary parking increased, Sinopec capacity utilization rate at the lowest of 40.03% on June 19.

In terms of different processes, oil production operation rate has a great impact. In June, oil production capacity utilization rate was 71.61%, -0.17% month-on-month and -13.94% year-on-year.  The average capacity utilization rate from January to June was 76.79%, year-on-year -7.7%.  Since last October, the state began to control coal, the price is relatively stable, has little impact on the cost, coal production capacity utilization rate is mostly at a high level.

In the second half of the year, compared with the first half of the year, the maintenance of the device is reduced, and the capacity utilization rate will gradually recover, but there are still many short-term shutdown devices, and the increase of supply is limited.


Post time: Jul-07-2022