22 April 2011 05:12 [Source: ICIS news]
SHANGHAI (ICIS)--China’s styrene butadiene rubber (SBR) prices may hit a new high on tight supply and a sharp increase in feedstock butadiene (BD) values, industry sources said on Friday.
SBR prices surged by yuan (CNY) 2,000/tonne ($308/tonne) since the end of March to CNY27,500/tonne for non-oil grades and CNY23,500/tonne for oil-extended grades this week, according to data from Chemease, an ICIS service in China.
Feedstock BD prices soared on tight supply because of several cracker outages and turnarounds in Asia, Europe and the US, according to an earlier ICIS report.
Yangzhou Petrochemical, a major BD producer in China, increased its ex-works prices by CNY1,000/tonne since the end of March to CNY21,500/tonne this week, Chemease data showed.
In addition, ongoing maintenance at SBR plants in China tightened supply, causing a surge in SBR prices, the sources added.
PetroChina’s subsidiary, Lanzhou Petrochemical, shut down its 100,000 tonne/year SBR plant in mid-April for one month of regular maintenance, a company source said.
Meanwhile, Tianjin Lugang Petroleum and Rubber is running only one of its two 50,000 tonne/year SBR lines.
“We need to pay close attention to the safety instead of the output because the plant is new,” said a company source.
($1 = CNY6.50)
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