will shut down its ethylene unit at its Litvinov facility for about 21 days at the beginning of October. Replacement of a turbine that drives the ethylene cooling compressor is the reason for the shutdown, according to a company statement from yesterday. Production of certain types of high density polyethylene has been interrupted for some time and this will also be repaired during this period. estimates the lost volume in production and subsequent sales of these types to reach approximately 10,000 tons. is building a stockpile in order to meet contracted October deliveries to minimize the financial impact of the shutdown.
The shutdown at Litvinov was not expected by the market. The financial impact from the turnaround will depend on the petchem margin environment in October. We expect the company to minimize losses by stockpiling ahead of shutdown. We see the news as slightly negative.