PP market under the influence of Ningbo pandemic

Ningbo in East China's Zhejiang province on Monday reported three COVID-19 cases, said local health authorities. The three cases were from the same family in Zhenhai district in the east of Ningbo, and all the three have been sent to a designated hospital for treatments, according to China daily. Five new cases of COVID-19 are reported by local authorities on Tuesday in Ningbo, Zhejiang province. Ningbo initiated a level 1 emergency response this morning. Zhenhai District implemented temporary lockdown measures and the entire district organized large-scale nucleic acid testing.

Plant operation:

Nationwide, Ningbo, as a prefecture-level city under the jurisdiction of Zhejiang Province, the distribution of its PP production capacity is relatively concentrated. Ningbo’s PP production capacity reaches 2.55 million tons, accounting for 65% of Zhejiang Province, 40% of East China and about 8% of China.

From the perspective of administrative area, there are 2 plants located in Zhenhai District, namely Sinopec Zhenhai (ZRCC) (500kt/year) and Ningbo Fund (400kt/year), while other plants are all located in Beilun District, which is close to Zhenhai District.

Among them, Ningbo Fund has shut its 400kt/year PP plant on Dec 5 for maintenance, and has not been affected by the epidemic. Sinopec Zhenhai (ZRCC) operates normally, but the logistics transportation has been significantly affected, mainly affecting the delivery of plants and terminals. Market participators are suggested to waiting for further clarification of relevant policies.

We will continue to follow up on the production and logistics of the plants in Zhenhai, as well as whether the scope of epidemic prevention and related measures will be extended to the whole city or even the whole province.