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EDC/PVC producers in Shanghai reduce output in July |
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Chlor-Alkali producers in Shanghai have reduced its output by up to 50% in July due to the lack of feedstock.
According to an announcement by Sinopec, its subsidiary Shanghai Petrochemical had shut down its No.1 cracker in order to ensure the output of gasoline.
Although Shanghai PC doesn’t boast of any polyvinyl chloride (PVC) capacity on its own, it was the key supplier of ethylene feedstock to Shanghai Chlor-Alkali Co. (SCAC) in Wujing, Shanghai, for PVC production.
Meanwhile, in Caojing, Shanghai, SCAC had to cut its EDC production rates due to the shortage of hydrochloric acid feedstock. This was caused by the severe restrictions on TDI transportation by the government, thus forcing the company to reduce TDI production which in return reduced hydrochloric acid production.
The facility was expected to reduce its output by 50%, which would have a profound influence on the market.
This was similar to what SCAC’s petrochemical complex in Caojing Industry Park was facing. Its 260,000/tonne EDC facility could only be run at 50% operation rate with production lost estimated to be around 10,000 tonnes.
In order to deal with the tight supply of feedstock, SCAC was heard to be on the lookout to import EDC and VCM in the spot market. However, the surging prices of the products were proving to be a barrier against the company’s will.
SCAC produces 370,000 tonne/year of PVC and 260,000 tonne/year of EDC in the two complexes.
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