Manufacturers said that due to the plunge in the price of pure benzene, those production equipment with toluene as the raw material is the most vulnerable. Since the beginning of March, due to overcapacity and weak U.S. demand, the price of pure benzene has dropped drastically, making the profit of pure benzene production plants using toluene as a raw material using toluene disproportionation (TDP) and hydrodealkylation (HDA) processes negative. Over the past few weeks, the price of toluene FOB in Korea has averaged 20~25 US$/t higher than that of pure benzene, which is far below the 50 U/ton difference between pure benzene and toluene required for the profitability of HDA process units. The difference between TDP and TDK is 20~30 USD/ton. According to the manufacturer, due to poor economic efficiency, the production of part-toluene pure benzene units may be suspended or the operating rate may be reduced.
Under the current market conditions, the production of TDP/HDA units to stop production or reduce production is an inevitable result. A Japanese manufacturer said that although the plan has not yet been determined, it will certainly not be fully loaded. South Korea's GSCaltex is also evaluating its Yeochun TDP plant operating rate, which typically produces 60,000 tons of pure benzene annually. The company stated that if pure benzene prices continue to weaken, it may shut down the equipment or reduce the production load. Other companies such as South Korea's S-Oil and Kumho Chemicals also consider adopting similar measures.
Asian pure benzene price drop device faces suspension of production
According to foreign media reports, major pure benzene producers in Asia have warned that if pure benzene prices continue to maintain a weak market, many installations will likely stop production or reduce operating rates.