China’s major petrochemical July output declines on weaker demand

22 August 2012 06:23  [Source: ICIS news]

Naphtha cracker. ChinaSINGAPORE (ICIS)--China’s output of major petrochemical products has shown a large decline in July because of the weaker demand and slower economy of the country, industry sources said on Wednesday.

The country’s naphtha output decreased by 8.6% year on year to 2.17m tonnes in July, while its total output in the first seven months of the year declined by 1.6% year on year to 17m tonnes, the data showed.

Ethylene output declined by 6.7% year on year to 1.20m tonnes in July, while its total output in January-July dropped by 3.8% to 8.78m tonnes compared with the same period a year earlier, according to data from China Petroleum and Chemical Industry Federation (CPCIF).

China’s polyethylene (PE) output dropped by 6.4% year on year to 813,000 tonnes in July, while its total output in January-July fell by 3.8% to 5.76m tonnes compared with the same period a year earlier.

Benzene output decreased by 6.4% year on year to 497,000 tonnes in July, while its total output in January-July fell by 0.4% to 3.68m tonnes compared with the same period a year earlier.

China’s crude oil output in July, however, increased by 1.4% year on year to 17m tonnes in July and its total output in January-July rose by 1.7% year on year to 118m tonnes.

Prices for 65 products covered by ICIS Chemease, an ICIS Service in China, showed a mixed trend in the third week of August. Prices were higher for 16 products, stable for 33 products and lower for 16 products, according to data from Chemease.

Bulk soft-foam polypropylene glycol (PPG) showed the largest price increase of 10% while polymer methyl di-p-phenylene isocyanate (MDI) showed an increase of 7%. Phthalic anhydride (PA) and toluene di-isocyanate (TDI) both increased by 3% each, according to data from Chemease.

Butadiene prices saw the largest decrease of 13%, while prices for oil-extended styrene butadiene rubber (SBR) and butadiene rubber (BR)-9000 fell by 8% and 7% respectively.

China’s petrochemical output:

Product

July 2012

Jan-July2012

Output (‘000

% change*YOY

Output (‘000 tonnes)

% change*YOY

tonnes)

Crude

17,026

1.4

117,691

1.7

Crude processing

37,604

1.1

266,497

1.6

Natural Gas (billion cbm)

8.26

1.0

61.8

5.6

Gasoline

7,442

10.1

50,083

8.0

Diesel

13,877

-0.4

98,769

1.6

Naphtha

2,167

-8.6

16,832

-1.6

Ethylene

1,198

-6.7

8,780

-3.8

Benzene

497

-6.4

3,683

-0.4

PE

813

-6.4

5,758

-3.8

PP

855

6.0

6,358

11.4

Methanol

1,971

15.4

15,098

17.0

Acetic acid

316

-11.3

2,485

6.2

PVC

1,082

-1.9

7,786

3.7

Polyester

913

-6.7

6,586

4.8

Polysilicon

10

14.5

82.1

21.2

Fertilizer

6,357

8.5

43,256

11.5

Source: CPCIF

Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections


By: Dolly Wu
+65 6780 4359



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