Chinese producers brought forward maintenance shutdown at PDH plant

Two major local producers in China have decided to bring forward the maintenance shutdown at their propane dehydrogenation (PDH) units together with downstream PP plants this week.

Oriental Energy shuts its 600,000 tons/year PDH unit in Jiangsu province and the 400,000 tons/year PP plant for 30 days.

Zhejiang Satellite shuts its 450,000 tons/year No. 1 PDH unit in Jiaxing while production at the two PP units is not affected.

Both producers initially planned to conduct maintenance during late March 2020, however, with the current high inventories pressure and soft outlook for propane costs, it makes better economic sense to shut down earlier.

There have been reports that both producers have obtained approval from the government to import USA propane without bearing the trade war tariffs. The emergence of USA cargoes might pressure regional propane prices lower in April. As reported earlier, Saudi Aramco slashed March shipment offers for propane by $75/ton from last month to $430/ton FOB Ras Tanura port.