Ningxia Baofeng Energy has taken its polypropylene (PP) production units offline for maintenance, adding to a wave of scheduled and unscheduled outages in China’s petrochemical sector.
According to a source in China reported that the company halted operations around August 31, 2025, though details regarding the precise duration of the shutdown remain uncertain, and no official confirmation has been released.
The shutdown affects three major PP units located in Yinchuan, Ningxia, with production capacities of 300,000 mt/year, 330,000 mt/year, and 500,000 mt/year respectively. Together, these facilities represent more than 1.1 million metric tons of polypropylene output annually, making Baofeng one of the largest contributors to domestic PP supply in western China.
Market participants noted that while the outage was expected as part of routine maintenance, its scale has drawn attention given the current fragile balance in China’s PP market. Domestic demand has remained under pressure throughout 2025, particularly in packaging, automotive, and household goods sectors, while oversupply continues to weigh on prices as new capacities from Chinese producers come online.
Traders commented that the Baofeng shutdown may provide limited short-term support to sentiment, particularly in northern and western China, if supply tightness emerges. However, many buyers remain cautious, highlighting that downstream demand is still weak and that abundant alternative supply from both local and imported cargoes is likely to limit any significant upward price response.
Industry observers added that the timing of the shutdown, coinciding with the lead-up to September, when restocking normally picks up, will be closely watched. Should the units remain offline longer than anticipated, it could temporarily ease oversupply pressures and support a more balanced market environment. Nonetheless, most sources agree that broader fundamentals, shaped by sluggish consumption and global capacity expansions, will remain the dominant influence on PP price trends in the near term.
The Yinchuan shutdown reinforces the critical role of Baofeng in China’s polypropylene landscape, with its operational decisions having a direct impact on regional market sentiment and supply availability.
