29 May 2012 08:40 [Source: ICIS news]
SINGAPORE (ICIS)--Shandong Huaxing Petrochemical Group plans to shut one of its fluid catalytic crackers (FCC) at Dongying in Shandong for maintenance on 2 June, a company source said on Tuesday.
The FCC can process 1.4m tonnes/year of fuel oil. The company’s other FCC, which can process 1.6m tonnes/year of fuel oil, will continue running during the shutdown.
Huaxing Petrochemical is one of the largest refiners in the region and produces around 7,000 tonnes of propylene each month.
“It’s estimated that the shutdown will reduce our propylene output by 50%,” the company source added.
It’s not clear when the unit will be restarted and this is dependent on the market situation for gas and diesel, the source said.
The shutdown is expected to support prices on the propylene market, industry sources said. Spot prices in Shandong were at CNY9,650-9,750/tonne ($1,522-1,538/tonne) on Tuesday, up by CNY50/tonne compared with Monday because of limited domestic supply.
($1 = CNY6.34)
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