LG Chem ramps up operating rates at NBR plant

29 July 2008 08:22  [Source: ICIS news]

SINGAPORE (ICIS news)--South Korean synthetic rubber producer LG Chem has ramped up operating rates at its 50,000 tonne/year nitrile rubber (NBR) plant to 70% following its restart just over a week ago, a company source said on Tuesday.

 

The NBR plant in Daesan was shut down on 10 July for debottlenecking, where is was expanded from 35,000 tonnes/year to the current capacity. 

 

Meanwhile, soaring feedstock butadiene (BD) costs as well as tight supply and robust demand have spurred NBR producers to hike offers for August shipments by more than $300/tonne to $3,500-3,600/tonne CFR (cost and freight) Asia.

 

However, one Korean NBR producer has spiked August offers to $4,000/tonne CFR (cost and freight) Asia, up a whopping $800/tonne from the previous month due to limited stocks.

 

“We have no spot cargoes and we have no choice but to push up the price to $4,000/tonne due to soaring BD feedstock cost,” the producer said.

 

BD spot prices have surged by more than $400/tonne in the past month to around $3,350/tonne CFR NE Asia (northeast Asia), according to global chemical market intelligence service ICIS pricing.

 

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By: Helen Yan
+65 6780 4359

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