China's Shenhua Baotou cuts PP, PE production rate on technical issues

Shenhua Baotou Coal Chemical Co unexpectedly reduced its operating rate at both coal-based PP and PE units on 12 March 2018 due to unspecified technical issues, market sources said.

Based in Baotou, Inner Mongolia, China, both of the company's PP and PE units are able to produce 300,000 tons per annum. While Shenhua is working on the issues to restore regular run rate within this week, industry participants are whispering about a possibility that lower production rate could stem from plans to reduce inventories pressure.