Japan’s Zeon mulls cutting SBR output on high costs

10 September 2008 10:48  [Source: ICIS news]

TOKYO (ICIS news)--Japan’s Zeon Corp will consider reducing operating rates at its styrene butadiene rubber (SBR) units by about 10%, or 10,000 tonnes/year, in the November-December period if the butadiene (BD) market tightens, an official from the chemicals producer said on Wednesday.

 

“Because if the market falls, we’d have to buy more expensive butadiene,” the spokesman, who declined to be named, said.

 

“We don’t have a specific plan yet [to cut production] but we’ll see how the market condition is in October and decide,” he added.

 

With Japanese ethylene producers reducing production on weak downstream demand, there might not be enough BD supply in the coming months, he added.

 

A shortfall of BD could be exacerbated because Mitsubishi Chemical Co’s (MCC) No 2 cracker in Kashima remained shutdown due to a technical glitch, the spokesman said.

 

Despite the falling prices of naphtha, BD prices were expected to hover at high levels due to the shortage, he added.

 

Zeon’s SBR plants, which are currently operating at full rates, have a capacity of 100,000 tonnes/year and are located in Tokuyama, Yamaguchi prefecture.

 

Meanwhile, Japanese producer JSR said on Friday it planned to cut an undisclosed amount of production of synthetic rubber, including SBR, from October.

 

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By: Tomomi Yokomura
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