24 June 2011 04:23 [Source: ICIS news]
SINGAPORE (ICIS)--Major Asian synthetic rubber producer, Kumho Petrochemical Co (KKPC), is planning to cut the operating rate at its butadiene rubber (BR) plant by 50% in July because of surging feedstock butadiene (BD) costs, a company source said on Friday.
The company reduced the operating rate at the 410,000 tonne/year BR plant in Yeosu to 80% in June, but it has decided to reduce the operating rate further because of the continuous price hikes in feedstock BD, the source added.
“We will run the BR plant at 50% in July as our margins are negative and we cannot recover our costs because of the feedstock BD price,” the source said.
Spot offers for BD for July have increased to above $4,000/tonne (€2,800/tonne) CFR (cost & freight) northeast (NE) Asia this week for shipments in July, up by $500/tonne since the middle of May, according to ICIS.
Spot prices of BD are rising because of a tighter-than-expected supply from cracker outages in Taiwan and Singapore, and a surge in demand in the ?xml:namespace>
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