24 July 2013 04:47 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Qixiang Tengda Chemical has shut down its 100,000 tonne/year butadiene (BD) unit at Zibo in Shandong province because of weak prices of the olefin, the company said on Wednesday.
The exact shutdown date was not mentioned in the company’s announcement.
During the shutdown, the unit’s oxygenation and dehydrogenation process will be upgraded to bring down the production cost of BD, the company said in a disclosure to the Shenzhen Stock Exchange.
On 19 July, BD was assessed at an average of $870/tonne (€661/tonne) CFR (cost and freight) northeast (NE) Asia, down 60% from mid-February because of oversupply amid weak demand, according to ICIS data.
The shutdown’s duration will depend on how the upgrade works on the plant progress, the company said.
It expects this year’s BD production to be adversely affected by the shutdown.
BD-related products contributed 24.9% to Qixiang Tengda’s total operating revenue in 2012, according to the statement.
($1 = €0.76)
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