China Butadiene Supply to Ramp Up in Jan
By the end of December, there were 44 butadiene producers included in the normal load calculation in China, with a total capacity of 6,546kt/a. The sample capacity was divided by region as follows.
China Butadiene Producer Capacity by Region
In December, the operating rate of China’s butadiene industry was 60.01%, up 0.11% from last month. According to SCI, the monthly output of butadiene was around 367kt 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 Sinopec Shanghai Petrochemical remained offline. CNOOC and Shell Petrochemicals Phase II, Shandong Wintter Chemical and Shandong Shouguang Luqing Petrochemical were restarted in early December. Shanghai Secco Petrochemical restarted its butadiene unit after seeing a brief shutdown in early December. Zhejiang Petroleum & Chemical resumed normal operation of its Phase III unit in mid-December. The Phase I unit at Zhejiang Petroleum & Chemical was cut loads in early December and then ran normally. The butadiene units at BASF-YPC, Sinopec Qilu Company and Liaoning Bora Petrochemical were shut down closing to the end of December. The operating rate of other butadiene units saw limited changes.
Overall, the operating rate of China’s butadiene industry inched higher M-O-M. Butadiene units with a total capacity of 1,370kt/a were shut in December, and it was estimated that the output losses caused by maintenance reached around 41.77kt.
As seen from the above chart, the operating rate of units at most of China’s butadiene producers remained stable with a 68% share of the total in December, down 8% 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 BASF-YPC, Sinopec Qilu Company, Shanghai Secco Petrochemical, Sinopec Maoming Company, Zhejiang Petroleum & Chemical Phase I & Phase II, as well as Liaoning Bora Petrochemical trended down M-O-M. PetroChina Fushun Petrochemical, PetroChina Sichuan Petrochemical, Sinopec Guangzhou Company, CNOOC and Shell Petrochemicals Phase II, Shandong Wintter Chemical, Sinopec Zhongke (Guangdong) Refinery and Wanhua Chemical Group uplifted their operating rates of butadiene units. The operating rate of other butadiene units changed slightly. On the whole, China’s butadiene supply saw an uptick from last month.
In January 2024, the butadiene units at Shandong Yuhuang Chemical, Nanjing Chengzhi Yongqing Energy Technology, Jiangsu Sailboat Petrochemical, Jiutai Energy Inner Mongolia and Sinopec Shanghai Petrochemical (one set) may remain offline. The butadiene units at BASF-YPC, Sinopec Maoming Company (100kt/a) and Sinopec Guangzhou Company are likely to be restarted. The restart time of the butadiene unit at Sinopec Qilu Company is still uncertain. Sinopec Beijing Yanshan Company and Liaoning Bora Petrochemical have experienced brief unit hiccups in early January. Other butadiene units may run normally. On the whole, it is envisaged that the butadiene supply in January may ramp up M-O-M.
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