Jan 2023 China Butadiene Supply to Extend Gains
By the end of December, there are 39 butadiene producers included in the normal load calculation in China, with a total capacity of 5,946kt/a. The sample covers the capacity of 930kt/a, 405kt/a, 3,062kt/a, 790kt/a, 150kt/a, 369kt/a and 240kt/a, respectively in 7 producers in Northeast China, 3 producers in North China, 18 producers in East China, 5 producers in South China, 1 producer in Southwest China, 3 producers in Northwest China and 2 producers in Central China.
Remarks: The butadiene capacity at Zhejiang Petroleum & Chemical Phase II was revised to 250kt/a.
In December, the operating rate of China’s butadiene industry was around 61.97%, down 4.03% from last month. According to SCI, the monthly output of butadiene was around 344.4kt in December. Within this month, the butadiene units at Shandong Yuhuang Chemical, Jiangsu Sailboat Petrochemical, Nanjing Chengzhi Yongqing Energy Technology, Jiutai Energy Inner Mongolia and Shandong Wintter Chemical remained offline. A 60kt/a butadiene unit at Sinopec Yangzi Petrochemical was shut down briefly on December 8 and restarted on December 13. Zhejiang Petroleum & Chemical restarted its Phase II butadiene unit in late December. Fujian Refining & Petrochemical also restarted its butadiene unit closing to late December. The operating rate of other butadiene units didn’t see obvious changes.
Overall, the operating rate of China’s butadiene industry edged down M-O-M. Butadiene units with a total capacity of 760kt/a were shut in December, and it was estimated that the output losses caused by maintenance reached around 41.72kt.
As seen from the above chart, the operating rate of units at most of China’s butadiene producers mainly remained steady in December, accounting for around 78% of the total but down 1% 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 PetroChina Jilin Petrochemical, Zhejiang Petroleum & Chemical Phase I & Phase III, Shandong Shouguang Luqing Petrochemical, etc., ratcheted up M-O-M. The operating rate of the butadiene units at Zhejiang Satellite Petrochemical, Zhejiang Petroleum & Chemical Phase II, Fujian Refining & Petrochemical and Sinopec Yangzi Petrochemical leveled down M-O-M. Overall, in December, the supply of Chinese-made butadiene inched up from last month.
In January 2023, the butadiene units at Shandong Yuhuang Chemical, Nanjing Chengzhi Yongqing Energy Technology, Jiangsu Sailboat Petrochemical, Jiutai Energy Inner Mongolia and Shandong Wintter Chemical will remain offline. Other butadiene units will not see scheduled maintenance and mainly run normally. Shenghong Petrochemical, Sinopec Hainan Petrochemical and PetroChina Guangdong Petrochemical may conduct test run of their new butadiene units. On the whole, in January 2023, the butadiene supply may continue to rally from December 2022.
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