Most petrochemical makers in China are expected to cut production amid a build-up up of inventory and expectations of weaker consumption in the months ahead amid the unabated spread of the deadly Wuhan coronavirus.
While financial and commodities markets in the country re-opened on 2 February after a prolonged Lunar New Year holiday, most downstream factories are still closed on government orders until 10 February.
“Most of the integrated complex, such as the producers from Sinopec and PetroChina are running normally. But due to the transportation issues, some of non-integrated factories might cut back [on production] due to the shortage of feedstock, for instance, the methanol-to-olefin producers,” said Amber Liu, head of ICIS petchem analytics in Asia.
