Ningxia Baofeng Energy has shut down operations at its high-density polyethylene (HDPE) unit in Yinchuan, Ningxia province, after initiating a maintenance turnaround at the end of August 2025.
According to a source in China, “The company is reported to have halted its units around August 31, 2025, for maintenance. However, the exact date and duration of the shutdown remain unclear, and confirmation from an official source has not been obtained.”
The plant, with an annual capacity of 400,000 metric tons, is one of the key HDPE facilities in northwest China and serves a wide range of downstream industries, including packaging, blow molding, and pipe manufacturing. Market participants noted that while the unit’s closure was anticipated as part of routine maintenance cycles, the lack of clarity on the restart timeline has sparked speculation about possible short-term tightness in regional supply.
Industry observers highlighted that the shutdown comes during a period of muted demand across China’s polyethylene sector, where oversupply and weak end-user consumption have pressured prices for much of 2025. In this context, the Baofeng outage may provide only limited upward support, unless the downtime extends longer than expected or coincides with other production disruptions. Traders also remarked that buyers remain cautious, reluctant to commit to large volumes while global polyethylene markets are under pressure from new capacity additions in China and the Middle East.
Still, the temporary halt underscores the importance of maintenance schedules in shaping regional sentiment. As one of the largest private energy and chemical producers in China, Baofeng’s operational status is closely watched by market participants for its potential impact on supply balances, particularly in northern and western China. Any prolonged outage could shift the balance slightly, though broader fundamentals remain weighed down by sluggish downstream demand.
