Latest Chinese Butadiene ODH Units Running Status

Given the great increases in butadiene prices, players have shown high attention on the butadiene ODH units in China. There are 5 sets of ODH units in China, and the details are as follows:

The ODH unit capacity at Zibo Qixiang Tengda Chemical is 150kt/a. The 100kt/a unit is running at full loads. The downstream unit, PBR unit, is running normally. The redundant goods are sold to the market. Qixiang Tengda's profit is fairish.

There are two units in Shandong Yuhuang Chemical and the total capacity is 180kt/a. In Q1 2016, the 100kt/a unit was transformed into extraction unit. The company purchases mixed C4 to produce butadiene. As the supply of C4 is tight, the company employs the 80kt/a unit to produce crude C4. Butadiene resources are for both inner use and sales.

The 100kt/a ODH unit in Shandong Weite Chemical was transformed into 60kt/a extraction unit in Q1, 2016. The unit was shut at the beginning of 2017 and it was scheduled to restart in mid-March.

The 100kt/a ODH unit at Shandong Kenli Petrochemical has been shut since 2015. The company planned to restart its unit to produce butene-1 at the end of 2016 but failed as the butadiene prices were very high. It is heard that the company plans to restart its unit in May 2017. All butadiene will be sold to the market.

Jiangsu Sailboat Petrochemical has a ODH unit with the capacity at 100kt/a. The unit is scheduled to be put into operation in mid-2017. All butadiene will be sold to the market.

On the whole, the ODH units may operate normally if the butadiene prices remain high. Thus, the supply will increase, which may pressure the coming butadiene market.