Malaysia's Lotte Titan is expected to shut its 220,000 t/yr high-density polyethylene (HDPE) swing unit from 5-6 July for month-long maintenance.
Its No.1 naphtha-fed cracker will also be shut simultaneously for maintenance. The cracker can produce up to 285,000 t/yr of ethylene and 145,000 t/yr of propylene.
Lotte Titan may cut operating rates at its 640,000 t/yr polypropylene (PP) plant on reduced propylene supplies from the respective cracker.
The producer shut its bigger No.2 naphtha cracker and other polymer units for similar maintenance in March 2020.
The shutdown is expected to reduce regional supply of HDPE and PP in July, which is lengthening because of less export to the key Chinese market and other regions.
Rising container freight rates and tightness in shipping space for long-haul shipments are restricting polyethylene (PE) exports beyond Asia.
Higher new PE capacity in China since the third quarter of last year has weakened import demand. China's Lianyungang Petrochemical, a subsidiary of Zhejiang Satellite Petrochemical, and Huatai Shengfu have started their new 400,000 t/yr HDPE unit and 400,000 t/yr linear low-density polyethylene/HDPE units, respectively at the end of April.
Argus assessed duty-free HDPE film prices at $1,180-1,200/t cfr southeast Asia on 20 May, $120/t lower from a month earlier.
