S Korea’s KKPC to cut Ulsan NBR plant run rate in May on BD surge

18 April 2011 04:08  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s Kumho Petrochemical Co (KKPC) plans to cut production at its 100,000 tonne/year styrene butadience rubber (SBR)/nitrile rubber (NBR) swing plant in May because of rising costs of feedstock butadiene (BD), a company source said on Monday.

The plant in Ulsan will be running at 80% next month from 100% currently, the source said.

 “The feedstock BD price is rising too fast and [is] too high, which has eroded our margins, so we have no choice but to reduce the operating rate of the NBR line,” the source added.

The company is also planning to shut its 70,000 tonne/year styrene-butadiene-styrene (SBS) plant in May for the same reason.

KKPC is Asia’s largest synthetic rubber producer and major consumer of BD.

BD spot prices surged by more than $200/tonne (€138/tonne) week on week to $3,080-3,120/tonne CFR (cost and freight) NE (northeast) Asia on 15 April, ICIS data showed.

($1 = €0.69)

By: Helen Yan
+65 6780 4359

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