S Korea's YNCC to cut Yeosu BD output in H2 March

10 March 2010 02:50  [Source: ICIS news]

SINGAPORE (ICIS news)--South Korea’s Yeochun NCC (YNCC) will cut production at its 240,000 tonne/year butadiene (BD) extraction unit in Yeosu in the second half of March, when cleaning works at the plant will have to be carried out, a company source said on Wednesday.

“We will reduce the operating rate of the BD unit to 70% during the cleaning process of the tower reboiler which will start around 20 March and will take about two weeks [to complete],” the source said.

Lower operating rates at YNCC’s Yeosu unit would further tighten BD supply in Asia, which could push spot prices even higher, traders said.

BD spot offers for April shipments have spiked to $2,050/tonne (€1,517/tonne) FOB (free on board) Korea, up $250/tonne from March contracts of around $1,800/tonne pipeline delivered.

($1 = €0.74)

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By: Helen Yan
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