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    Home > Organic Chemistry Topics > Organic Chemistry Project > Supply shortages boost the price of butadiene in Northeast China to jump 8%

    Supply shortages boost the price of butadiene in Northeast China to jump 8%

    • Last Update: 2022-02-25
    • Source: Internet
    • Author: User
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    It is reported that, driven by the shortage of supply, the price of butadiene in the Northeast region soared by 8% on the 21st
    .
    On the 22nd, Sinopec East China Sales Company raised prices by 300 yuan per ton, and the price increase continued to spread
    .
    Relevant manufacturers said that the current market supply is tight, the downstream rigid demand support is obvious, and the market shipments are smooth
    .
    The butadiene market has risen by more than 11% in the past week, and has risen by 53% since the beginning of this year
    .
    According to news from Shanghai Securities News on June 23, the domestic butadiene market has recently reversed its upward trend.
    The main driving factor is the low inventory on the supply side.
    With the support of manufacturers’ lack of inventory pressure, the ex-factory price has begun to increase, and trading merchants have offered orders.
    Going higher, the mentality of reluctant sales is obvious
    .
    At the same time, some downstream users entered the market for purchases, which clearly supported the market, and the atmosphere of market negotiations improved
    .
    The latest manufacturer trends show that at present, the mainstream price of butadiene in North China is between 8,600 yuan and 8,700 yuan/ton, and the price of butadiene in East China has risen to 8,600 yuan/ton
    .
    Northeast manufacturers have limited export sales, and the market supply will continue to be tight in the short term
    .
    As the domestic trading activity heats up and the external market goes up, manufacturers still hold bullish expectations for the market outlook
    .
    In addition, the trend of the downstream synthetic rubber market becomes stronger, which also brings support to the butadiene market
    .
    In terms of quotation, on June 22, Sinopec East China Sales Company raised the butadiene supply price of Yangzi Petrochemical, Yangba, Shanghai Petrochemical and Zhenhai Refining & Chemical Corporation by 300 yuan/ton, and the implementation will be 7,800 yuan/ton from now on
    .
    The supply of butadiene in the Shandong area is scarce.
    Because the northeast traders' inventory cannot be effectively replenished, the intention of shipment is not high, and sporadic high-price offers are around 8,700 yuan to 8,800 yuan/ton
    .
    Holders in the North China market are reluctant to sell
    .
    Shandong Wanda’s 100,000-ton/year butadiene plant was temporarily shut down and export sales were suspended.
    The spot supply was tight, and the mainstream market price was consolidating at 8,600 yuan to 8,700 yuan/ton
    .
    In terms of device dynamics, the Beijing Dongfang butadiene device was shut down for maintenance, and the start-up time is to be determined
    .
    Shandong Yuhuang’s 100,000-ton/year butadiene plant shuts down, and the restart time is uncertain
    .
    The Yanshan Petrochemical Plant was shut down as planned
    .
    Liaoyang Petrochemical's 30,000 tons/year installation load is about 60% to 70%
    .
    The butadiene plant of Wuhan Petrochemical Company was shut down for maintenance on April 11 and restarted on June 3
    .
    Fujian United has two butadiene plants with a total capacity of 180,000 tons per year
    .
    Among them, a 60,000-ton/year 2# device was restarted on June 12, and the device is currently in the commissioning stage, and there is no product output; another 120,000-ton/year 1# device is operating normally
    .
    At present, the total production capacity of butadiene in China exceeds 4 million tons.
    With the promotion of supply-side reform, the industry supply and demand pattern is expected to improve
    .
    In addition, the G20 meeting will be held in Hangzhou in September, and the production capacity in East China may be limited, which will also support the market
    .
    The increase in market prices is conducive to improving the shipment volume and gross profit margin of related companies
    .
    The Minsheng Securities Research Report believes that Qixiang Tengda has a 150,000-ton butadiene production facility, which benefits from product price increases with greater performance flexibility
    .
    If the butadiene plant runs at full capacity and the price increases by 1,000 yuan/ton, the company’s annualized EPS will increase by 0.
    13 yuan
    .
    In addition, the company also has a production capacity of 190,000 tons of methyl ethyl ketone, accounting for nearly half of the domestic share.
    The company's 2015 semi-annual report shows that this business accounts for nearly 50% of its main operating profit
    .
    At the same time, the company has entered the energy purification industry chain by holding 99% of Qilu Keli's equity, increasing its business layout in sulfur recovery and coal chemical catalysts
    .
    Huajin is mainly engaged in crude oil processing, urea and other businesses, and has a production capacity of 120,000 tons of butadiene
    .
    Guosen Securities Research Report believes that the company has 6 million tons of crude oil refining capacity, and the Ordnance Industry Group plans to further increase its refining capacity to 10 million tons in the future.
    With a good refining boom, the petrochemical business has room for continued growth
    .
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