China's Shanghai Petrochemical to shut BD line on 22 Oct–10 Nov

15 October 2012 05:19  [Source: ICIS news]

SINGAPORE (ICIS)--China's Shanghai Petrochemical plans to shut one of the two lines of its 120,000 tonne/year butadiene (BD) plant in Shanghai for around three weeks, a source close to the company said on Monday.

The Chinese producer, which is a subsidiary of Sinopec, will shut the plant’s 70,000 tonne/year BD line from 22 October to 10 November, the source said, without disclosing the reason.

The temporary shutdown will decrease the producer’s BD supply by around 3,500 tonnes in October and November, the source said.

However, Shanghai Petrochemical will be able to continue supplying its existing customers, as it has sufficient BD product, the source added.

Shanghai Petrochemical has not confirmed if the BD plant’s second line, which has a capacity of 50,000 tonnes/year, will be shut during the same period, the source said.

The upcoming shutdown of Shanghai Petrochemical’s 70,000 tonne/year BD line has made market players more optimistic about the outlook, as supply in the Chinese domestic BD market is ample.

Shanghai Petrochemical's BD price is at yuan (CNY) 16,300/tonne ex-works (EXW) on 15 October, according to Chemease, an ICIS service in China.

However, BD prices are still expected to drop in October, because of weak demand from the downstream butadiene rubber (BR) and styrene butadiene rubber (SBR) sectors, according to market players.

By: Maggie He

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