China domestic SBR price declines stop on new plant delay

27 May 2009 08:55  [Source: ICIS news]

SINGAPORE (ICIS news)--Domestic styrene butadiene rubber (SBR) prices in China stopped falling this week over reports that the start-up of Qilu Petrochemical’s new 100,000 tonne/year SBR plant has been delayed to June, traders said on Wednesday.

"We expected the domestic SBR price downtrend to continue due to additional supply coming on stream, but as the new Qilu SBR plant has been delayed, prices have stopped their decline," a trader said.

Domestic non-oil grade 1502 SBR prices in China were stable at yuan (CNY) 11,300-11,500/tonne ($1,647-1,676/tonne) ex-warehouse (EXWH) this week after plunging CNY1,500-2,000/tonne last month. Domestic SBR prices were at CNY12,700-13,500/tonne EXWH at the end of April.

Qilu’s new SBR unit was initially slated to come on stream in the middle of May but had been delayed to June due to a technical snag at its upstream naphtha cracker, a company source said.

The cracker will supply the feedstock butadiene to the plant.

($1 = CNY6.86)

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By: Helen Yan
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