Apr China Butadiene Supply to Float Up
By the end of March, there are 43 butadiene producers included in the normal load calculation in China, with a total capacity of 6,466kt/a. The sample covers the capacity of 930kt/a, 405kt/a, 3,312kt/a, 1,060kt/a, 150kt/a, 369kt/a and 240kt/a, respectively in 7 producers in Northeast China, 3 producers in North China, 20 producers in East China, 7 producers in South China, 1 producer in Southwest China, 3 producers in Northwest China and 2 producers in Central China.
In March, the operating rate of China’s butadiene industry was around 61.98%, down 1.44% from last month. According to SCI, the monthly output of butadiene was around 371.5kt in March. Within this month, the butadiene units at Shandong Yuhuang Chemical, Jiangsu Sailboat Petrochemical, Nanjing Chengzhi Yongqing Energy Technology, Jiutai Energy Inner Mongolia, Shandong Wintter Chemical and Sinopec Zhenhai Refining & Chemical Phase I remained offline. Zhejiang Petroleum & Chemical restarted its Phase II unit on March 14. Shandong Shouguang Luqing Petrochemical shut down its butadiene unit briefly in mid-March. The Phase I butadiene unit at Zhejiang Petroleum & Chemical was shut in late March. The operating rate of other butadiene units changed limitedly.
Overall, the operating rate of China’s butadiene industry moved down M-O-M. Butadiene units with a total capacity of 1,145kt/a were shut in March, and it was estimated that the output losses caused by maintenance reached around 63.669kt.
As seen from the above chart, the operating rate of units at most of China’s butadiene producers mainly kept flat in March, accounting for around 90% of the total but down 5% M-O-M. As for production technologies, butadiene units via butene ODH technology remained offline. As seen from the butadiene units via C4 extraction technology, the operating rates of butadiene units at Zhejiang Petroleum & Chemical Phase I, Shandong Shouguang Luqing Petrochemical, etc. pared down M-O-M. New butadiene units at PetroChina Guangdong Petrochemical, Sinopec Hainan Petrochemical and Shandong Jinhai Chemical maintained normal operation. The operating rates of other butadiene units changed slightly. Overall, in March, the supply of Chinese-made butadiene extended gains M-O-M.
In April, the butadiene units at Shandong Yuhuang Chemical, Nanjing Chengzhi Yongqing Energy Technology, Jiangsu Sailboat Petrochemical, Jiutai Energy Inner Mongolia, Shandong Wintter Chemical and Sinopec Zhenhai Refining & Chemical will remain offline. Zhejiang Petroleum & Chemical plans to restart its Phase I unit in early April. PetroChina Fushun Petrochemical may face brief hiccups in mid-April. PetroChina Liaoyang Petrochemical plans to take maintenance of its butadiene unit from mid-April. Shenhua Ningxia Coal Industry plans to take maintenance of its butadiene unit in late April. Other butadiene units will not see scheduled maintenance. On the whole, it is envisaged that the butadiene supply in April may continue to float up M-O-M.
All information provided by SCI is for reference only, which shall not be reproduced without permission.
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