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)
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