Chinese PO imports could be under pressure in 2020
PO prices fell in Dec after Shandong Sanyue’s new plant started operation
Against a backdrop of upcoming new capacities and weakening derivatives demand, Chinese propylene oxide (PO) imports could be curtailed in the near future. Jiangsu Fuqiang’s PO plant is scheduled to come online in mid-2020 while CNOOC & Shell Petrochemical and Sinochem Quanzhou Petrochemical have planned to start up their PO units in late 2020. Domestic PO supply is expected to increase by a total of 600kt/yr after these facilities begin operations. Consumption from downstream polyols sector has reduced as some sponge producers in China relocated their plants to SE Asia due to the anti-dumping duties (ADDs) imposed on Chinese mattresses by the US (ICIS).