January 15, CNOOC and Shell Petrochemicals Company (CSPC) PE Unit Operations Update

Phase I:

• The LDPE unit was shut down on the evening of January 11 and is scheduled to restart on January 18.
• The HDPE unit is currently producing grade 5421B.

Phase II:

• The LLDPE unit is producing grade 7042.
• The HDPE unit is producing grade B5502A.

PriceSeek Analysis

LDPE - Bull/Bear Score: 1

• The shutdown of the LDPE unit (January 11–18) has reduced supply, leading to tight spot availability in the short term, which may drive up prices and benefit the spot market.
• Combined with polyethylene futures data (e.g., the 2605 contract closing at 6,785 RMB/ton, down slightly), the shutdown event could provide support, alleviating downward pressure and benefiting futures prices.

HDPE - Bull/Bear Score: 0

• HDPE units are operating normally (producing 5421B and B5502A), with no supply changes, resulting in a neutral impact on spot prices.
• Polyethylene futures show minimal overall volatility (e.g., the 2605 contract change of -6), indicating a neutral effect on the futures market.

LLDPE - Bull/Bear Score: 0

• The LLDPE unit is operating normally (producing 7042), with no supply disruptions, leading to a neutral impact on spot prices.
• Polyethylene futures data (e.g., high trading volume for the 2605 contract but a slight price decline) suggest market stability, resulting in a neutral effect on futures prices.