Sinopec Shell polyethylene plant suspends production, PE spot market focuses on restart timing

By SKYSEVEN Chemical Technical Team · 2026-09-17

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【Polymerupdate News】CNOOC and Shell Petrochemicals (CSPC)has suspended production at its polyethylene (PE) plant. Located in the Dayawan Petrochemical Zone, Huizhou, Guangdong, CNOOC and Shell is an important domestic polyethylene production base, with its HDPE and LLDPE products widely supplied to downstream plastic markets in South China and across the country. The current PE plant shutdown will directly affect the domestic polyethylene spot circulation volume, and the market is closely watching the shutdown cause, maintenance cycle and restart time.

This shutdown incident will result in phasic disturbances to domestic PE spot supply. As the main polyethylene consumption area, South China will see reduced regional supply due to the shutdown of CNOOC and Shell's plant, which will provide certain support to polyethylene spot prices. Traders and downstream companies in film, injection molding and pipe industries have started to assess alternative supply sources.

As of the publication of this report, CNOOC and Shell has not yet disclosed the specific result in of this shutdown, the production capacity involved in the plant, or the expected restart time. Market participants will continue to track the plant dynamics and assess the impact of this shutdown on the domestic PE supply and demand pattern.

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