PetroChina Guangxi Petrochemical will reduce LPG production by 150-200mt a day later this month, as it is scheduled to start 8-10-day maintenance of some secondary units around Sep 12, according to a source with the refinery.
The refinery already cut spot LPG supply to the market by about 200mt a day as from late August. This was because it began supplying LPG as feedstock to Guangxi Yuchai Petrochemical, which has recently launched operation of a 200,000-mt/yr solvent project, C1 learned from local trading sources.
As a result, Guangxi Petrochemical's spot LPG supply to the market will likely drop to about 1,200mt a day after it starts maintenance next week, down from about 1,600mt in the second half of August.
In view of less supply, some market players expect LPG prices in Guangxi to remain above those in west Guangxi, different from usual. Guangxi Petrochemical’s LPG ex-refinery prices were at about Yuan 6,310/mt on Sep 5, versus around Yuan 6,270/mt for refineries in west Guangdong, C1 assessment showed.
