Chinese private-sector petrochemical producer Zhejiang Petrochemical (ZPC) achieved on-specification production at its Zhoushan phenol/acetone plant earlier this week.
The phenol/acetone plant, with 400,000 t/yr of phenol and 250,000 t/yr of acetone capacity, was fed with its feedstocks propylene and benzene a week ago after a delay of almost two months because of some facility issues.
Its start-up has led to some downwards pressure in China's domestic phenol market. Ex-tank east China phenol prices have fallen to 5,250-5,350 yuan/t, down by Yn100/t from last week. But by-product acetone prices picked up by Yn800/t from last week to Yn7,300-7,400/t ex-tank east China on the back of firmer demand.
The phenol/acetone unit is the last to start operations in the first phase of construction at Zhoushan in east China's Zhejiang province. This phase includes a residual fluid catalytic cracker (RFCC) with 280,000 t/yr of propylene capacity, a naphtha cracker with 1.4mn t/yr of ethylene and 700,000 t/yr of propylene capacity, a propane dehydrogenation (PDH) unit with a 600,000 t/yr propylene capacity and full integrated downstream units. The RFCC and naphtha cracker started operations in December 2019. while the PDH unit came on line in mid-July.
ZPC is building a second phase at Zhoushan, which include 300,000 t/yr low-density polyethylene, 450,000 t/yr of high-density polyethylene/linear low-density polyethylene and 900,000 t/yr polypropylene units, which are aiming for a start-up during late 2020 to mid-2021.
