Profits of Dehydrogenation MTBE Units Surged

SCI learnt that the 200kt/a iso-butane dehydrogenation unit at Shandong Lihuayi Group was restarted, and the MTBE supply recovered to the normal level. Meanwhile, the 200kt/a iso-butane dehydrogenation unit at Heilongjiang Anruijia Petrochemical was shut down for maintenance for about one week. On the whole, China’s average operating rate of dehydrogenation MTBE units was 53.45% from April 9 to April 13, down 0.93% W-O-W.

The operating rates of dehydrogenation MTBE units were relatively low, but the profits of the units performed well. According to SCI’s statistics, the average profit of dehydrogenation MTBE units was RMB 802/mt from April 9 to April 13, up RMB 115/mt or 16.74% W-O-W. As the operating rates of the MTBE industry declined, the MTBE supply dropped to some extent. Besides, the international crude oil prices surged supported by the geopolitical factors. Therefore, China’s MTBE prices increased, and the profits of MTBE units grew accordingly.

At present, the ADH unit at Shandong Dongming Petrochemical Group Qianhai Chemical will be restarted this week. Meanwhile, the MTBE units at Shandong Shenchi Chemical and Shandong Chambroad Petrochemicals will be restarted later. After H2 April, the MTBE supply will recover to the normal level. Therefore, SCI predicts that China’s MTBE prices will decrease to some extent in May.