Benzene Downstream Gross Margin & Operating Rate Analysis

Margin & loss analysis:

Calculated on November 16, the margin & loss patterns of benzene’s downstream products were unchanged. All downstream products were gaining.

The overall profitability of benzene downstream products was fairish. Thereinto, the profitability of styrene, aniline and CPL declined from the last week, and the others gained.

Analysis:

1. Talking aboutthe downstream operating rate change from last week, some were higher, and some were lower.

The overall phenol/acetone industry operating rate rose to 80% due to the restart of units at Sinopec Beijing Yanshan Company.

The overall CPL industry operating rate decreased to 67%, because the units at Shanxi Lubao Coking Group, Jiangsu Haili Dafeng Chemical and one of CPL lines at Sinopec Baling Company were shut even though the unit at Hubei Sanning Chemical Industry resumed.

The operating rates of some maleic anhydride units were raised, resulting in higher maleic anhydride industry operating rate of 48%.

The MDI unit at Covestro in Shanghai was shut, leading to the declining industry operating rate of 59%.

2. 240kt/a styrene unit at Shandong Yuhuang Chemical is predicted to restart next week, and the whole industry operating rate is likely to be 82%.

The aniline unit at Jiangsu Yangnong Chemical Group is predicted to be shut. Simultaneously, 2 sets of 30kt/a units at Shandong Jinling Group may be raised to full load. There is no big movement in the integral aniline industry operating rate.

The CPL unit at Jiangsu Haili Dafeng Chemical is likely to restart, and the CPL industry operating rate may rise to 69%.

It is possible for the adipic acid unit at Yangmei Group Taiyuan Chemical New Material to restart. As a result, the whole industry operating rate may reach 45%.

The overall maleic anhydride industry operating rate may rise to 49%, resulting from the estimated restart of the unit at Shandong Qilu King-Phur Pharmaceutical.

Besides, the other products maintain the current operating rates largely.

3. The calculation of aniline industry operating rate includes the supporting aniline units at MDI plants.