09 October 2013 10:12 [Source: ICIS news]
SINGAPORE (ICIS)--Qixiang Tengda Chemical has been running its two butadiene (BD) units in Shandong province at 25% of capacity since mid-May because of poor market conditions, a company source said on Wednesday.
The two BD units have a combined capacity of 150,000 tonnes/year, the source said.
"The cost of our production is too high. We just produce about 100 tonnes/day," the source said.
Qixiang Tengda Chemical produces BD through a butylene-hydrogenation process.
Commercial production at the smaller BD unit started in May this year, while the bigger plant started operation in the same month in 2012, the source said.
"We just run at low rates and wait for [BD] prices to increase," the company source said.
Spot BD prices in China’s domestic market were at yuan (CNY) 12,500-12,600/tonne ($2,042-2,059/tonne) in north China this week, market sources said. Prices were unchanged from 25 September, according to Chemease, an ICIS service in China.
"If prices in China can continue increasing, we may run [our BD plants] at around 50% of capacity later," the source from Qixiang Tengda Chemical said.
($1 = CNY6.12)
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