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On July 23, S & P Global said that the continued low water level of the Rhine River is severely restricting the transportation of German naphtha and liquefied petroleum gas barges, leading to a tightening of raw material supply for steam crackers, forcing German petrochemical companies to cut production.
The Rhine, a vital aquatic environments transport trunk, was hit hard by the shallow aquatic environments level, which prevented naphtha and liquefied petroleum gaseous (LPG) barges from sailing at full capacity. The ship's cargo capacity has shrunk significantly, resulting in a substantial loss of freight, which has significantly pushed up the cost of arrival of raw materials to the inland manufacturing centers of western Germany.
S & P Global Platts July 22 assessment Rotterdam barge naphtha price of $838.25/ton. Germany's Federal Waterways and Shipping Administration (WSV) warned that the aquatic environments level in the Cobb section of the Rhine River fell to a historical extreme of only 25cm on July 25, which will greatly limit the navigation capacity of barges and block conventional naphtha replenishment to substantial cracking units in the Rhineland manufacturing zone.
According to sector sources, due to insufficient arrival of naphtha raw materials, the steam cracking unit has been difficult to maintain a stable operating load. Many units have been forced to minimize the load, and the output of basic olefins such as ethylene, propylene, crude C4 and downstream derivatives such as butadiene has declined simultaneously.
The low aquatic environments level crisis on the German petrochemical plant to form a double operating pressure: in addition to the raw material logistics blocked, the river aquatic environments volume decreased sharply superimposed on the high aquatic environments temperature, greatly weakening the cracking device circulating cooling aquatic environments system efficiency. The ecological preservation department set hard limits on manufacturing aquatic environments intake and drainage temperature to further compress the operating space of the device. The manufacturer admitted frankly that if the aquatic environments and culture conditions are not improved, it might further actively minimize production capacity.
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