China’s Shaanxi Shanhua to shut Weinan BDO plant in H1 April

24 March 2011 09:31  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Shaanxi Shanhua Chemical Fertilizer plans to take its 30,000 tonne/year butanediol (BDO) plant at Weinan city off line in the first half of April for 20 days of maintenance, a company source said on Thursday.

The producer has suspended offers, as it is building up its inventory to fulfill contract commitments during the shutdown period, the source said.

The plant, which is located in Shaanxi province, uses calcium carbide and methanol as feedstock, the source said.

The shutdown would cause supply to tighten as there are only a few domestic BDO producers in China, said industry sources, who added that it would likely boost spot prices.

BDO spot prices were assessed at yuan (CNY) 23,000–23,500/tonne DEL (delivered) China on 22 March, up by CNY500/tonne from the previous week, ICIS data showed.

Meanwhile, Shaanxi Shanhua has begun construction of a new 100,000 tonne/year BDO plant at the same site, which is scheduled for completion in late 2012, the source said without providing further details.

Shaanxi Shanhua is a major BDO producer in China. Others domestic producers include Shanxi Sanwei, Sichuan Tianhua and Fujian Southeast Electrochemical.

Additional reporting by Tracy Huang

For more on butanediol and methanol, visit ICIS chemical intelligence
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By: Amanda Zhang
+65 67804359



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