On March 25, the first vehicle of the PO/SM plant of Sinochem Quanzhou Petrochemical's 1 million tons/year ethylene project was successfully installed and shipped, and new players were welcomed in the market.
The PO/SM unit of Sinochem Quanzhou Petrochemical's ethylene project was officially put into operation on February 26, 2021, and it was successfully started at 19:53 on March 19. The smooth start of the PO/SM device has made up for the gap of the propylene oxide integrated device product in Fujian Province, and also contributed to the realization of the overall benefits of Sinochem Group and Sinochem Energy in 2021.
Beginning in the fourth quarter of 2020, the propylene oxide market has been in a state of tight supply, and prices have also entered an upward channel. According to Mobei market data, as of March 26, the average quotation price of propylene oxide companies in East China was 20087 yuan/ton, a nearly 7% increase compared with the beginning of the month, and a nearly 150% increase over the same period last year.
According to the PO theory production cost calculation model:
PO production cost = 0.83 * (propylene price + 50 yuan) + 1.4 * liquid chlorine price + 1800 yuan
According to the current mainstream transaction price of propylene market in Shandong area of 7,800-7850 yuan/ton, the ex-factory price of liquid chlorine market is 1,600-1800 yuan/ton, the current production cost of propylene oxide is around 11,000 yuan/ton, and the theoretical gross profit of the installation is close to 10,000 yuan/ton. (Considering the actual procurement cycle, labor, environmental protection costs, etc., there will be deviations from the actual situation, only for general reference)
Good market sentiment and profits stimulated the launch of new domestic devices.
However, some market participants believe that with the commissioning of multiple new devices in the later stage, the industry should also be alert to the risk of oversupply brought about by the release of concentrated production capacity.
Source: Mobile Public Account
