China's Tianjin Bohua has decided to bring forward a 40-day turnaround at its 600,000 t/yr propane dehydrogenation (PDH) plant to 28 December because of narrowing margins.
The shutdown was first planned to get underway in February 2020.
Strong feedstock propane prices have squeezed PDH margins in recent weeks. Chinese PDH margins have fallen to negative territory at around -$75/t this week compared with $10/t last week, based on the propane Argus Far East Index (AFEI).
The AFEI has surged by 22pc since the start of this month to $602.75/t on 24 December. And consumers need to pay high premiums of up to $70-80/t against AFEI to be able to secure propane amid a supply shortage.
Tianjin Bohua will maintain its downstream operations during the PDH shutdown. These include 500,000 t/yr of oxo alcohol and 150,000 t/yr of propylene oxide capacity.
