April Chemical Industry Shutdown Wave Arrives: Maintenance Plans Reflect Deep Cost Anxiety Across Enterprises

In April, China’s chemical industry has entered a phase of “active production cuts.” From PTA to PP, from PE to EVA, multiple industrial chains have simultaneously moved into maintenance cycles. The synchronized contraction on the supply side is not a strategic choice, but a reflection of harsh realities: when margins fall below break-even levels, production itself becomes a source of losses.

The PTA sector has experienced one of the most concentrated maintenance waves in recent years. Yisheng Petrochemical has shut down or reduced operations across its Dalian, Ningbo, and Hainan sites, with a combined capacity of 6.6 million tons, while its new materials subsidiary has also cut output by 30% on its 7.2 million-ton facilities. Hengli Petrochemical’s Dalian base shut down two 5-million-ton production lines starting April 10 for maintenance. Additional facilities, including Xinfengming’s Tongxiang 3-million-ton unit, Rongsheng Petrochemical’s Zhejiang Petrochemical 2-million-ton unit, and INEOS’s Zhuhai 1.1-million-ton unit, have also entered maintenance cycles. Overall, shutdowns and reduced utilization across the industry involve more than 22 million tons of capacity, pushing the operating rate down to 68–70%, the lowest level for the same period in the past three years.

The polypropylene (PP) sector is even more severe. In March, industry operating rates had already fallen to a historic low of 67.53%, with monthly production losses reaching 998,200 tons. Entering April, maintenance plans at enterprises such as Yulong Petrochemical and Zhejiang Petrochemical have been implemented one after another, while companies including Jingbo, Sinopec Quanzhou, and Dongguan Juzhengyuan have joined the shutdown list. Total PP capacity under maintenance in April is expected to reach 10.75 million tons, with production losses projected to rise to 1.1578 million tons.

In polyethylene (PE), maintenance-related losses have reached a record high. Multiple units entered spring turnaround schedules in April, with high-density polyethylene (HDPE) units being the most affected. Production lines at Lanzhou Petrochemical, Sinopec Sabic (Sino-Korean Petrochemical), Qilu Petrochemical, Sinopec Sabic Tianjin, and Wanhua Chemical have all been shut down. Domestic supply is expected to continue tightening, with maintenance losses remaining at elevated levels for the year.

EVA maintenance scale and duration are significantly higher than in previous years. The Gulei Petrochemical 300,000-ton unit has been shut down since early March, with maintenance extending through early Q2. In addition, multiple major units—including Jiangsu Hongjing, Ningbo Formosa Plastics, Zhejiang Petrochemical, and Yangzi Petrochemical—have entered maintenance periods starting in April, leading to a staged decline in overall industry operating rates. On the import side, conditions are also unfavorable: negative price spreads between domestic and overseas markets have weakened import economics, while Northeast Asian suppliers have increased shipments to Southeast Asia, shifting regional trade flows. As a result, EVA imports in April are expected to decline significantly year-on-year.

In styrene monomer, Gulei Petrochemical’s 600,000-ton unit remains under maintenance until April 28, while a 120,000-ton unit of Yanchang Petroleum is undergoing a 50-day shutdown overhaul. A 400,000-ton ethylbenzene dehydrogenation styrene unit at Zhejiang Petrochemical also began a 40-day shutdown in early April. As these maintenance activities take effect, styrene operating rates continue to decline month-on-month, and port inventories are easing.

Why are so many shutdowns concentrated in April? Three key forces are at play.

The most direct driver is margin pressure. In March, PTA average processing margins were only 205 RMB/ton, insufficient to cover material consumption costs. Oil-based PP recorded an average monthly loss of -855 RMB/ton, while PDH-based PP losses were even higher at -2,223.74 RMB/ton. When “processing margins fall below cash cost,” every additional ton produced means additional losses. For high-cost facilities, shutting down is more economical than continued operation.

Feedstock supply risks have accelerated maintenance decisions. Ongoing geopolitical tensions in the Middle East have created uncertainty in shipping through the Strait of Hormuz, tightening import expectations for aromatics feedstocks such as PX. Although China’s self-sufficiency in PX has improved significantly, external disruptions still amplify market concerns over feedstock stability. Against this backdrop, some refineries and PTA producers have chosen to advance maintenance schedules or proactively reduce operating rates—both to carry out equipment upkeep and to hedge against potential supply volatility.

Safety inspections have also contributed to supply contraction. Following a series of industrial safety incidents in early April, multiple regions in China launched special safety inspections in the chemical sector. During these inspection windows, some companies have proactively shut down units for maintenance.

Although most of the current shutdowns are planned turnarounds, they reveal deeper structural issues: thin industry margins, high cost pressures, and increasing uncertainty in feedstock supply. Under normal conditions, maintenance follows a regular cyclical pattern. However, when feedstock costs continuously compress margins—and even push units into cash losses—companies tend to advance or cluster maintenance windows. In other words, this wave of large-scale shutdowns is less a routine “planned maintenance cycle” and more the result of rational economic calculations after the numbers have been run.