Middle‑East geopolitical tensions have flared up again. Escalating US‑Iran hostilities over the weekend heightened market fears of prolonged shipping disruptions in the Strait of Hormuz and Bab el‑Mandeb Strait. Geopolitical risks have directly driven up crude oil prices. On Monday, Brent crude surged to near USD 97 per barrel, while WTI crude rebounded to around USD 92 per barrel.
While geopolitics acts as a catalyst, domestic plant maintenance, load cuts and production curtailments form the core driver behind the current price surge. Many petrochemical units have seen lower operating rates with repeated delays to resumption schedules. Tight available spot supplies have pushed up quotations across various product grades.
PE Segment
- Zhenhai Refining & Chemical: 300 KT/Y HDPE Line 3, maintenance from Sep 1‑7
- Fushun Petrochemical: 80 KT/Y full‑density PE unit, maintenance from Sep 5‑25
- Guangdong Petrochemical: 400 KT/Y full‑density PE Line 1, maintenance from Sep 7‑11
- China‑Korea Petrochemical: 300 KT/Y LLDPE unit, maintenance from Sep 7‑15
- Shanghai SECCO: 300 KT/Y HDPE unit, maintenance from Sep 7‑16
In addition, production resumption has fallen short of expectations. The 900 KT capacity at Zhejiang Petrochemical and Yulong Petrochemical faces delayed restart. Yangzi Petrochemical’s restart has been repeatedly postponed, with the latest projected restart date set for Sep 21.
ABS Segment
Producers including Zhejiang Petrochemical and Lihuayi continue to cut operating loads and output. Tight supply, coupled with a nearly RMB 1,000/MT weekly jump in styrene prices, delivered strong cost support. ABS posted a peak cumulative gain of over RMB 600/MT in the first week of September, leading the broader price rally. Nevertheless, downstream buyers resist high price levels, and some producers cut prices over the weekend to boost shipments.
September marks the traditional demand peak for PE, as agricultural film producers enter the stock‑building cycle. Tight PE supply paired with “Golden September” seasonal demand expectations will offer solid short‑term price support.
Post time: Sep-08-2026