Korea's Hanwha Total to load down butadiene production

South Korea's Hanwha Total will be loading down butadiene production from 5-13 March after detecting a technical issue at its 150,000 t/yr compressor unit at Daesan.

The company does not expect to require a complete shutdown to resolve the technical issue but anticipates production losses of around 3,200t.

March contract deliveries to off-takers will be reduced by up to 1,400t, and the company has now shelved a previous plan to sell an 1,800t spot cargo for April.

This means that South Korean butadiene consumers such as Kumho Petrochemical and LG Chemicals could have to seek imports to plug the shortfall in production.

Hanwha Total's announcement also comes on the heels of butadiene prices hitting 20-month highs of $1,300-1,340/t cfr northeast Asia in the week of 23 February because of tight supply.

By Bohan Loh