China’s Yisheng Petrochemical plans to shut its 2.2 million mt/year No. 3 purified terephthalic acid line at Ningbo on April 27 for 15 days of maintenance, a Chemical Industry source said Friday. The company is capable of producing a total of 13.75 million mt/year of PTA across three sites in China — Ningbo, Dalian and HaChina’s domestic PTA prices were supported early Friday, with the most actively traded September futures contract on Zhengzhou Commodity Exchange rising Yuan 42/mt from Friday’s settlement to Yuan 6,102/mt at 10:30 am local time (0230 GMT) Friday. The Asian PTA profit margin was widening amid the falling feedstock cost of paraxylene Chemical Industry, with the PX/ PTA spread calculated at $196/mt for CFR China, according to S&P Global data.
China’s Hengli Petrochemical is planning to begin commercial operation at its 600,000 mt/year new MTBE plant at Dalian, Liaoning Province in early May, a source close to the Chemical Industry company said on Friday. “(Hengli’s) new MTBE plant is expected to start its commercial operation in early May,” a company source based in China said to S&P Global on Friday. Initially, Hengli’s MTBE Marketing was expected to start in April according to the official documents to the Shanghai Stock Exchange filed by the company on March 25. The reason for the delay was not confirmed by the company when contacted. Once the Chemical Industry new MTBE plant begins running at full tilt, the total MTBE capacity in China will reach around 3.07 million mt/year, up 24.29% from the current capacity of around 2.47 mil mt/year, S&P Global data showed. The capacity expansion will make China one of the biggest MTBE producing countries across the Asian Chemical Industry and the ME, in line with the incumbent, Saudi Arabia. As of now, Saudi Arabia produces around 3.07 million mt/year of MTBE, the largest in the Middle East and Asia, followed by China at 2.47 mil mt/year, South Korea at 994,000 mt/year and Taiwan at 680,000 mt/year, according to S&P Global data.
South Korea’s S-Oil plans to restart its 600,000 mt/year of MTBE unit at Onsan in early-May, a Market source close to the Chemical Industry company said on Friday. The unit has been shut in late March in line with the 75,000 b/d high-severity residue fluid catalytic cracker (RFCC) at its 669,000 b/d Onsan refinery complex due to a technical glitch, S&P Global reported earlier. Market participants are expecting the restarts at several refineries across Asia, including the S-Oil’s, as well as the new capacity additions in China, to weigh on the MTBE Chemical Industry sentiment going forward. As reported, China’s Hengli Petrochemical is planning to begin commercial operations at its new 600,000 mt/year MTBE plant at Dalian, Liaoning province in early-May, a company source said Friday. “I think the forward curve structure for the May/June would be flat-to-contango, as there are quite a few refineries restarting,” a Singapore-based trader said early this week (Chemical Industry).
China’s Jiangsu Sailboat Petrochemical will restart its 100,000 mt/year butadiene unit in May after a turnaround that began in early April, a company source said Friday. The Chemical Industry exact date has not yet been decided, as the company will monitor the performance of the butadiene Market, the source said. The butadiene Market has been on a downtrend since January this year, with the domestic spot price falling 33.4% from its January peak to Yuan 7,750/mt ex-tank East China Chemical Industry Friday, according to S&P Global assessments. The decline was largely due to oversupply and weak downstream demand. The methanol-to-olefins Chemical Industry plant has a nameplate capacity of 315,000 mt/ year of ethylene, 385,000 mt/year of propylene. The company will be expanding its butadiene unit capacity to 180,000 mt/year in 2022, the source said.
China’s Ningbo Haiyue Chemical Industry was operating its propane dehydrogenation plant at Ningbo, in the eastern province of Zhejiang, at full capacity after completing maintenance, a company source said Friday. Ningbo Haiyue had earlier said it was aiming to achieve full output capacity by April 14 but then postponed it by four days to April 18, S&P Global reported earlier. “We are at a full operating rate since last Friday,” the company source said. Maintenance since March 4 and the delayed restart until April 18 resulted in a loss of around 50,000 mt of propylene. The PDH plant has the capacity to produce 600,000 mt/year of propylene and 500,000 mt/year of polypropylene Chemical Industry and uses 720,000 mt/year of propane Chemical Industry as feedstock when operating at 100% capacity.
Chemical Industry of China’s Yantai Wanhua will operate its 750,000 mt/year propane dehydrogenation plant in Yantai, Shandong province, at full capacity by Sunday, four days later than scheduled, a company source said Friday. “We are producing at 90% now, and will produce at the full rate by the end of this weekend,” the Chemical Industries company source said. Yantai Wanhua shut its PDH plant on April 1 and restarted on April 21. The Chemical Industris company had planned to operate at full capacity by April 24. The PDH plant has an annual propylene output capacity of 750,000 mt and can process 900,000 mt/year of propane.