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Hebei Haiwei shut its PDH plant in northern China

January 23/2020

MOSCOW (MRC) -- Hebei Haiwei idled its 500,000 mt/year propane dehydrogenation (PDH) plant in northern China for maintenance starting from December 31, 2019, reported S&P Global with reference to a market source.

"It's unknown when Hebei Haiwei will resume operation," a market source said, adding that the plant has difficulty in purchasing propane feedstock now due to high price.

Hebei Haiwei was said to have no term contract with overseas suppliers, and mainly sources spot cargoes from its neighboring rivals Tianjin Bohai and Yantai Wanhua.

"Tianjin Bohai has cut its propane imports these two months due to high prices, which is believed to have resulted in limited propane supply to the local market," the source added.    

As MRC wrote previously, Tianjin Bohai Chemical in northern China plans to extend maintenance period at its PDH plant by 10 days due to poor processing margin. Located in Tianjin, China, the PDH plant has a propylene capacity of 600,000 mt/year.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.
Author:Margaret Volkova
Tags:PP, homopolymer PP, propylene, Hebei Haiwei Group, Tianjin Bohai Chemical, Yantai Wanhua, China, Russia.
Category:General News
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