After the May Day holiday, the domestic butanol market price continued its pre-holiday rise and continued to rise.
The data shows that on May 6, the mainstream transaction price of n-butanol in East China market was 14,383 yuan/ton, which rose by 1258 yuan/ton or 9.58% on that day!
The market price increase of n-butanol in this round is mainly caused by the centralized overhaul of the equipment.
In May, the Qilu Petrochemical and Lihuayi installations were shut down for maintenance. The shutdown of the two installations has a greater impact on the supply of butanol. At the same time, the Shandong Jianlan installation reduced production in early May, and the Nanjing Chengzhi installation has a load of about 90%. The CNOOC and Shell installation has not yet been completed. Factors such as the restart have greatly reduced the supply of octanol in May. Due to the obvious shortage of octanol supply, Shandong large factories successively adjusted the output of n-butanol/octanol before the holiday, reducing the output of n-butanol and increasing the operating rate of octanol. It is reported that during the festival period, Yan'an Nenghua's n-butanol plant was temporarily shut down due to a failure of the upstream device, which aggravated the tension in the spot market. Therefore, the prices of n-butanol and octanol will increase simultaneously in the short term.
The higher prices in the upstream side also gave some support to the price increase of n-butanol. Around the holiday, the market price of propylene has also continued to rise, and mainstream transactions refer to the vicinity of RMB 8,100-8,300/ton. The rising spot price of polypropylene futures has given a boost to the propylene market mentality. The shipments of propylene plants have been relatively smooth, the purchase demand of downstream plants has continued, and the offer prices have continued to be firm.
At the same time, the major downstream companies of butanol have relatively stable start-ups and continue to purchase raw materials, which will support the recent high market price of butanol.
Source: Chemical Network
