11 April 2011 07:42 [Source: ICIS news]
SINGAPORE (ICIS)--South Korea’s Kumho Petrochemical Co (KKPC) will stop production at its 70,000 tonne/year styrene-butadiene-styrene block copolymer (SBS) plant at Yeosu in May if feedstock butadiene (BD) prices continue to surge, a company source said on Monday.
BD spot offers have spiked to $3,100-3,200/tonne (€2,139-2,208/tonne) CFR (cost & freight) northeast (NE) Asia last week, up by more than $500/tonne since early March, downstream synthetic rubber producers said.
“There is no margin for SBS producers, with BD at $3,000/tonne, and we have no choice but to shut down the SBS plant in May if BD prices continue to rise,” the company source added.
The company has been running its SBS plant at 50% capacity in April because of the high BD prices, said the source.
KKPC is Asia’s largest synthetic rubber producer and a major consumer of BD.
KKPC also operates a 480,000 tonne/year styrene butadiene rubber (SBR) plant, a 340,000 tonne/year polybutadiene rubber (BR) facility, a 50,000 tonne/year acrylonitrile-butadiene rubber line, a 70,000 tonne/year styrene butadiene (SB) latex unit and a 250,000 tonne/year acrylonitrile butadiene styrene (ABS) plant in South Korea.
($1 = €0.69)
For more on styrene and butadiene, visit ICIS chemical intelligence
Please visit the complete ICIS plants and projects database
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections