Baofeng Energy Builds A New Project

Shandong Zhemei’s annual production capacity of 160,000 tons of PMMA has officially commenced operation. The company’s Phase I project, with an annual capacity of 160,000 tons of PMMA, covers an area of 136 mu, while Phase II covers 150 mu, with a total investment of RMB 2 billion.

Recently, the environmental impact assessment document for the 250,000 t/y C4-to-1-butene project of Inner Mongolia Baofeng Coal-Based New Materials Co., Ltd. has been made public. The project will construct a 250,000 t/y 1-butene unit, adopting a domestically developed integrated process of “selective hydrogenation + super pre-fractionation + 2-butene isomerization + etherification de-isobutene + precision rectification.” The plant will produce 140,000 t/y of polymer-grade 1-butene, 18,300 t/y of MTBE (methyl tert-butyl ether), and 89,700 t/y of heavy C4. The main construction contents include a feedstock system, hydrogenation reaction unit, super pre-fractionation unit, 2-butene isomerization unit, etherification de-isobutene unit, and precision rectification unit. Public utilities will rely on the existing facilities within the plant, and supporting environmental protection facilities will be constructed.

Recently, the Zhengzhou Commodity Exchange officially introduced foreign traders to its polyester futures sector. This opening to overseas participants includes seven futures and options products: paraxylene (PX), bottle chip, short fiber futures and options, as well as purified terephthalic acid (PTA) options. Combined with the PTA futures that were opened to foreign traders in 2018, this has established a comprehensive polyester industry chain market pattern characterized by a full range of products, complete tools, and global coverage.

  On May 27, PVC production enterprises experienced relatively concentrated maintenance, while domestic demand orders remained sluggish. India's tariff policies combined with the rainy season have cooled down foreign trade exports. The supply and demand pattern shows weakness on both sides. With the end of the month approaching, policy support expectations are weak, but cost-based bottom support remains firm. The spot market is expected to fluctuate mainly within a range.

  On May 27, it was reported that the international crude oil market has experienced a "roller coaster" ride recently: the international oil prices, which had surged due to the Middle East geopolitical conflicts, suddenly took a downturn. The prices of NYMEX WTI crude oil futures and Brent crude oil futures both plunged sharply, with a cumulative maximum decline of over 14% since the peak on May 18. As of the time of reporting on May 26, both prices had risen more than 1% intraday. Industry experts indicate that, in the short term, changes in the Middle East geopolitical situation remain the key driving factor for international crude oil prices. Currently, the global crude oil market is facing a cliff-like shrinkage in supply, continuous inventory declines, and limited demand reduction, exacerbating the supply-demand imbalance. Strong fundamentals provide solid bottom support for oil prices from a medium- to long-term perspective, limiting the downside potential in the short term. Going forward, close attention should be paid to developments in the Middle East geopolitical situation and the navigation conditions in the Strait of Hormuz.