Sinopec Beijing Yanshan had planned to shut the smaller of its two solvents production lines at Yanshan on September 10 for planned maintenance. The two phenol-acetone production lines have a capacity of 160,000 mt/year and 100,000 mt/year, respectively.
Instead, both lines are now running at about 100% of capacity. On August 27, Sinopec Yanshan increased its ex-works phenol offer prices to Yuan 15,200/mt ($2,233/mt), up Yuan 600/mt from Yuan 14,600/mt on August 24.
Similarly, Sinopec Sabic Tianjin Petrochemical dropped its turnaround plans for its Tianjin-based plant, which can make 220,000 mt/year of phenol and 140,000 mt/year of acetone.
Sinopec Sabic Tianjin Petrochemical is a 50:50 joint venture between Saudi Basic Industries Corporation, or Sabic, and China Petroleum & Chemical Corporation, or Sinopec.
The joint venture plant reduced its production to about 40-50% of capacity last week, down from about 60-70% in August.
Local demand is being driven by downstream bisphenol-A producers. Phenol and acetone jointly go into the production of BPA, a raw material used for making polycarbonate.
The strong demand led to Sinopec Shanghai Mitsui Chemicals raising its BPA offer prices to Yuan 18,000/mt on August 30, up Yuan 500/mt from Yuan 17,500/mt.
A China-based source said other factors that influenced Sinopec's decision to cancel the turnarounds are maintenance plans by other local solvents producers.
For instance, Bluestar Harbin Petrochemical is expected to shut its phenol-acetone plant at Harbin, Heilongjiang province about mid-September for a 20-25 day turnaround.
The wholly owned subsidiary of China National Bluestar operates a plant that can deliver 72,000 mt/year of phenol and 48,000 mt/year of acetone.
Also, Jilin Petrochemical, a subsidiary of PetroChina, is expected to shut its 120,000 mt/year solvents plant in Jilin province at the end of September for scheduled maintenance, lasting about a month.
China Chemical Weekly: http://news.chemnet.com/en/detail-1411716.html
