Large Chemical Provinces Are Sealed And Controlled, And Chemical Giants Collectively Stop Production

Recently, Zhenhai District, Ningbo, Zhejiang reported 3 cases of COVID-19 positive. The official announcement of “Ningbo Release” stated that starting from 2 o’clock on December 7, 2021, Ningbo will initiate Level I emergency response and temporarily implement closed management in Zhenhai District. 

From the major news platforms, it can be seen that due to the prevention and control of the Ningbo epidemic, all materials in Zhenhai District cannot be sent out. The transportation of petrochemical products by Zhejiang Railway Dafeng Petrochemical, Zhenhai Refining & Chemical, LG Yongxing Chemical, etc., located in Zhenhai District, Ningbo, was the first to be affected. Some of the manufacturers stated that Zhejiang Petrochemical’s products could not be shipped normally.

Market participants said that Zhenhai Refining & Chemical's PP plant may reduce production. The ethylene glycol plant of the company is still in operation, but shipments have been suspended at the plant terminal. In addition, Ningbo Defu’s PP and MEG plants have been as planned since last week. Perform maintenance.

The current operating rate of the chemical industry is generally low. At the end of the year, parking and maintenance are concentrated, power and production restrictions continue to spread, and early warning of heavy pollution is also "adding fuel to the fire", making chemical companies fall into the abyss of "stopping production" .

The longest stop for 50 days, Wanhua, Hengli, Thorpe and other companies intensively overhaul at the end of the year

Chuanwei Chemical: The first and third units of the acetylene plant were shut down to cool down, the system stopped the feed of natural gas, and the shutdown mode was started.

Sichuan Meifeng announced that the production equipment of Sichuan Meifeng Chemical Fertilizer Branch and Compound Fertilizer Co., Ltd. will be scheduled to be shut down for overhaul by mid-January 2022.

KMT issued an announcement that the headquarter plans to start routine shutdown and maintenance of production equipment on November 8, 2021, and it is expected to be down for 35 days.

Wanhua Chemical announced that the first phase of the MDI unit (400,000 tons/year) of Wanhua Chemical (Ningbo) Co., Ltd., a wholly-owned subsidiary, will be shut down for maintenance on November 27, 2021, and the maintenance is expected to be about 45 days; the second phase of MDI The device (800,000 tons/year) will be shut down for maintenance on December 11, 2021, and the maintenance is expected to be about 45 days.

Jiangsu Suopu Chemical Industry: The acetic acid and ethyl acetate plants will be shut down for maintenance on November 18. The estimated maintenance and shutdown time will be about 28 days.

PTA:
Hengli Petrochemical: The 2#2.2 million tons unit started to shut down for maintenance on December 10;
Yisheng Dahua: 1# 2.25 million tons of PTA plant will be in operation on the afternoon of December 2 and the load will drop to 50%, and the recovery time is yet to be determined;

Fujian Baihong: 2.5 million tons of PTA equipment will be shut down for maintenance on December 1, and the maintenance will last about 25 days;
Ineos: 1.1 million tons/year is planned to be overhauled in mid-December.

soda ash:
Anhui Red Sifang: The soda ash plant is scheduled to be overhauled on December 15, 15 days, with a production capacity of 300,000 tons.
Ethylene glycol:
Fude Energy: 500,000 tons/year overhaul for 45 days (unplanned);
Sinochem Quanzhou: 500,000 tons/year will start overhaul for 50 days (planned).
Methanol:
Chongqing Chuanwei: (870,000 tons) started to stop for maintenance on December 6th;
Ningbo Fude: 60 plans to start parking maintenance on December 2nd.
Styrene:
One set in South China: The 2.5 million tons plant is scheduled to be shut down for maintenance, and the maintenance is expected to be around 3 weeks;
One set in East China: The 750,000-ton plant will be shut down tonight, and it is expected to be overhauled for one month;
One set in South China: The 1.1 million ton plant is scheduled to be overhauled in mid-December for 2 weeks;

The "big test" of dual energy consumption control has not yet ended, and the impact of power and production restrictions continues

Since the second half of the year, the pressure on energy supply has increased. In order to meet the dual control of energy consumption, many regions have vigorously adopted "carbon reduction" measures, and curtailment of electricity and production has become "commonplace." The last month at the end of the year can be said to be very critical. Therefore, many places have tightened the control of industrial enterprises such as chemical industry, which has greatly reduced the operating rate of chemical enterprises.

Nantong, Jiangsu: Currently, production will be shut down in turn from December 31st this year. Production will be shut down from December 22nd to 26th, and production from 27th to 31st. Some companies have been notified to suspend production for 15 days in December, and will send special personnel to conduct 24-hour inspections on the operation of the companies during the shutdown period.

Zhuji, Shaoxing, Zhejiang: Adjust the orderly power usage period from 7:00-23:00 every day to 24 hours a day.

Taicang, Jiangsu: Orderly electricity use has been implemented. In this round of orderly electricity use, the first group of the bombing plant will be shut down first, and the second group of bombing plant will be turned on first.
Wuxi High-tech Zone (Xinwu District): Implement orderly power-use rotations for industrial enterprises in the zone. The rotation mode is "open three and limit four", and the time period is 07:00-22:00. The 1353 enterprises in the district are divided into two groups, A and B. When the A group is in normal production, the B group is restricted in production. When the B group is in normal production, the A group will implement production restriction.

Heavy pollution weather "raid", chemical companies collectively "hibernate"
In addition to the planned parking maintenance and the recent electricity and production restrictions that lasted for a short half a year, many places in the country have recently encountered "raid attacks" from heavy pollution weather. Due to the gradual deepening of winter in the north, the “heavy pollution weather emergency warning” program has been issued in a large area of the country. Among them, more than 11 provinces have issued warnings, involving nearly 30 regions.
Hebei Cangzhou issued an orange warning for heavy pollution weather, and initiated a level II emergency response;
Zhuzhou, Hunan initiated the yellow warning for heavy pollution weather, and initiated the yellow level III response measures at the same time;
Ningxiang, Hunan, initiated the yellow warning for heavy pollution weather, and initiated the yellow (level III) response measures at the same time;
Changsha, Hunan, initiated the yellow warning for heavy pollution weather and initiated yellow (level III) response measures;
Xinxiang, Henan: Start the red warning for heavy pollution weather (level I response);
Zhengzhou, Henan: Started yellow warning (level III) response to heavy pollution weather;
Zhumadian, Henan: A yellow warning (level III) response to heavy pollution weather was launched;
Xuchang, Henan: Yellow warning (level III) response to heavy pollution weather was initiated;
Kaifeng, Henan: Yellow warning (level III) response to heavy pollution weather was initiated;
Hebi, Henan: Initiation of emergency response to heavy pollution weather level II (orange) early warning;
Jincheng, Shanxi: Start the orange warning for heavy pollution weather (Level II);
Sichuan Bazhong: The yellow warning for heavy pollution weather was upgraded to orange warning, and the level 3 emergency response was upgraded to the level 2 emergency response;
Zibo, Shandong: An orange warning for heavy pollution weather was issued, and a Level II emergency response was initiated.

According to the contingency plans issued by many places for heavy pollution weather, construction sites, industrial enterprise factories and industrial parks should stop using non-road mobile machinery of National II and below, and prohibit outdoor building demolition, spray painting, slope protection shotcrete, concrete mixing, etc., chemical companies The VOC-related processes were stopped and restricted production by levels, and even shut down the entire line.

Whether it is the shutdown of major factories such as Wanhua and Hengli for tens of days for maintenance, or the reduction in operating rate of chemical enterprises caused by power and production restrictions, or the high-pressure supervision of domestic environmental protection under the warning of heavy pollution weather, for chemical raw materials The supply of chemical materials will have a great impact, and there will be a tight supply of some chemical raw materials in the future.