Jun China Butadiene Operating Rate Ramped Up

Up to now, there are 28 butadiene producers in China, with a total capacity of 3,889kt/a. The investigated ones include the total capacity of 650kt/a, 335kt/a, 1,715t/a, 530kt/a, 120kt/a, 369kt/a and 170kt/a, respectively in 5 producers of Northeast China, 2 producers of North China, 11 producers of East China, 3 producers of South China, 1 producer of Southwest China, 3 producers of Northwest China and 2 producers of Central China.

In June 2018, the operating rate of units at China’s butadiene producers rallied to 70% roughly M-O-M. According to SCI, the butadiene output climbed to 226kt or so in June, because the 180kt/a butadiene unit at CNOOC and Shell Petrochemicals started up and ran at over 50% load in June. The butadiene units at Sinopec Zhenhai Refining & Chemical, Jiangsu Sailboat Petrochemical and BASF-YPC resumed normal operation. Only the 100kt/a butadiene unit at North Huajin Chemical Industries and a 60kt/a butadiene unit at Sinopec Shanghai Petrochemical were shut down for turnarounds. The butadiene unit at Zibo Qixiang Tengda Chemical was shut in late June, thus the shutdown had little impact on the operating rate in June.Thus, the whole operating rate warmed up in June.

As seen from the above chart, the operating rate of units at most China’s butadiene producers mainly remained flat in June, accounting for 82% of the total. As for production techniques, the operating rate of butene ODH units was still low. Only the 100kt/a butene ODH unit at Jiangsu Sailboat Petrochemical ran normally, and its operating rate advanced somewhat compared with early days. The butadiene unit at Zibo Qixiang Tengda Chemical ran at low load and was shut down in late June. Besides, the butene ODH units at Shandong Kenli Petrochemical and Shandong Yuhuang Chemical were still in downtime.

In July, most butadiene units will maintain normal operation in China. The butadiene unit at North Huajin Chemical Industries has been shut down for one-month maintenance since June 10, and it will be restarted in early July. A 60kt/a butadiene unit at Sinopec Shanghai Petrochemical has been shut down for more than 40-day maintenance since June 18, and it will not be restarted in July. The butadiene unit at Zibo Qixiang Tengda Chemical has been shut down in late June, and it is heard that the maintenance will last for more than 10 days. The 100kt/a butadiene unit at Jiangsu Sailboat Petrochemical will be shut down for 35-day maintenance. Overall, the butadiene supply will be largely stable in July.