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The impact of power shortage and shutdown in many places on the polypropylene in

Recently, Sichuan, Jiangsu, Zhejiang, Anhui and other provinces across the country have been affected by the continuous high temperature, and the electricity consumption has soared, and the electricity load has continuously hit new highs. Affected by the record-breaking high temperature and the surge in electricity load, the power curtailment "swept again", and many listed companies announced that they had encountered "temporary power curtailment and production suspension", and both upstream and downstream enterprises of polyolefins were affected. 

Judging from the production situation of some coal chemical and local refining enterprises, the power curtailment has not caused fluctuations in their production for the time being, and the feedback received has no impact. It can be seen that the power curtailment has little impact on the production enterprises. From the perspective of terminal demand, the current downstream enterprises are relatively severely affected by electricity curtailment, but there are relatively clear geographical restrictions. Downstreams such as North China and South China have not yet received clear feedback on power curtailment, while the impact is more serious in East, West and South China. At present, the downstream industry of polypropylene has been affected, whether it is a listed company with better efficiency or a small factory such as plastic weaving and injection molding; Zhejiang Jinhua, Wenzhou and other places have power curtailment policies based on opening four, stopping three, and a few small and micro enterprises. Open two and stop five; other areas mainly limit the amount of electricity consumption, and the starting load is reduced to less than 50%.

To sum up, this year’s “power curtailment” is relatively different from last year. The reason for this year’s power curtailment is more of insufficient power resources, allowing electricity to be used by the people and ensuring electricity consumption for people’s livelihood. Therefore, this year’s power curtailment affects upstream production enterprises. The impact is minimal, and the impact on downstream small and micro enterprises is greater, and the downstream demand for polypropylene is severely restricted.


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