Shenhua Chemicals to cut SBR plant op rate

29 September 2006 11:20  [Source: ICIS news]

SINGAPORE (ICIS news)--Shenhua Chemicals, a Chinese styrene butadiene rubber (SBR) producer,  has cut the operating rate of its 170,000 tonnes/year plant in Nantong by 10-20% to 80-90% in a bid to alleviate the high feedstock costs of butadiene (BD), a company official said on Friday.

 

“We cannot continue to absorb the high butadiene costs as our margins have been severely eroded. Butadiene prices have been rising continuously since the beginning of this year and we have no margins as SBR prices have fallen sharply in China,” he said.

 

“We will continue to operate at this reduced rate until the end of the year,” he added.

 

SBR domestic prices in China have fallen by about CNY1,000/tonne to CNY18,000/tonne delivered from the past month.

 

On the other hand, butadiene spot prices have been rising continually, from around $1,000/tonne CFR China in January to around $1,600/tonne in September.


By: Helen Yan
+65 6780 4359



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