China’s Shanghai Petrochemical to cut BD operating rate to 85%

28 November 2013 08:05  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Shanghai Petrochemical plans to reduce the operating rate of its 120,000 tonne/year butadiene (BD) unit in Shanghai to 85% capacity from December because of the closure of its naphtha cracker, a company source said on Thursday.

The company has to lower BD production in the near term, because there has been a shortage of feedstock supply from the closure of the 150,000 tonne/year upstream naphtha cracker, the source added. The BD unit is currently running at full tilt, according to the source.

The cracker is located at the same Shanghai site and has been shut permanently since 25 November, because of negative margins and deterioration, the source said.

Meanwhile, Shanghai Petrochemical will continue to run a separate 700,000 tonne/year naphtha cracker at the same site at full capacity in the future, according to the source.

It is estimated that the producer would lose 4,800 tonnes/year of BD output after the operating rate is cut, which is likely to have limited impact on the market, an industry player said.

Additional reporting by Joey Zhou

By: Viola Pan
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