China Offshore Bitumen Co in Shandong is estimated boost the output of 200# bitumen, a kind of bituminous feedstock for cokers, by about 88% month-on-month to round 90,000mt in May, according to a source with the refinery.
The surge is because the refinery will restart a 1-mil-mt/yr crude distillate unit on May 14, after maintenance, and it will also use another CDU for the production of 200# bitumen, the source explained.
Together with one 500,000-mt/yr CDU that is now producing 200# bitumen, China Offshore Bitumen will have CDUs with 2.5-mil mt of annual topping capacity yielding such feedstock for about one week, he said. Then the 500,000-mt/yr CDU will be shut down, while the other two CDUs will keep producing 200# bitumen until the end of May.
"The highest daily output will be about 5,000mt this month," said the source, adding that the adjustment to its production is because of much lower prices for heavy-duty bitumen.
Much larger supply of bituminous feedstock will weigh on Shandong market notably, as demand for such feedstock is already weakening after local refineries wrapped up CDU maintenance. In addition, refineries that have plans to purchase such feedstock are on the sideline as the market trend in oil product prices is not clear.
Located in Binzhou city, China Offshore Bitumen has 3.2-mil mt of annual topping capacity. It is mainly engaged in the production and sales of heavy-duty bitumen and lubricant.
