China readies for start up of plants with coal and methanol to olefin technology, PDH technology

Players in China have started to talk about the start-up of some new plants with coal-to-olefin technology as per ChemOrbis. The emergence of products from these new plants may be as soon as July, according to some players in the PP and PE markets. In addition, a propane dehydrogenation (PDH) unit is expected to come online this month while there are three more plants scheduled to come online by the end of this year, report sources. A trader based in Shanghai reported his unwillingness to accept the new higher levels for July in the PP and PE markets. “Buyers are showing resistance towards any price above $1550/ton CFR China despite the sellers’ ongoing firm stance. We do not hold an optimistic outlook for the medium term as demand is fragile and buying activity remains slow. Plus, there will be more PP and PE cargoes coming out of the new coal-to-olefin and polyolefin complexes soon,” he commented without specifying the producer. Therefore, they prefer to remain cautious and try not to build too much stock, he added. The upcoming emergence of coal based materials was also an issue causing jitters for a domestic PP producer in China. “We are planning to follow the pricing strategies of Sinopec and CNPC. Demand remains sluggish but luckily we do not sit on large stocks. Yet, we are concerned about new capacities. There will be lots of new plants starting up especially coal based ones,” a company source said. According to players, there are three plants with coal and methanol to olefin technology scheduled to come online this year: China Coal Shaanxi Yulin Energy with 300,000 tons/year ethylene and PE capacity in Northwest China Qinghai Salt Lake Industries with 400,000 tons/year ethylene and PE capacity in North China Legend Holding with 170,000 tons/year ethylene and PE capacity in East China Som propane dehydrogenation (PDH) units are also to come online-China’s Ningbo Haiyue New Material Co. is expected to start up its propane dehydrogenation plant with a propylene production capacity of 600,000 tons/year this month. This will be the second PDH unit operating in China. The other PDH plants expected to be commissioned this year are the following: Yantai Wanhua Polyurethanes with 750,000 tons/year propylene capacity in East China by December Zhejiang Shaoxing Sanyuan Petchem with 450,000 tons/year propylene capacity in East China by Q3 According to ChemOrbis, Zhejiang Satellite Petrochemical with 450,000 tons/year propylene capacity in East China