29 June 2011 06:37 [Source: ICIS news]
By Helen Yan
SINGAPORE (ICIS)--Synthetic rubber producers in ?xml:namespace>
Losses will likely be incurred with BD prices hitting an all-time high of $4,000/tonne (€2,800/tonne) CFR (cost and freight)
Korea Kumho Petrochemical Co (KKPC),
“Our BR margins are now negative and we have no choice but to cut our BR production output by 50% in July, and may shut down our BR plant in August if the BD price continues to rise,” the source said.
Synthetic rubbers like BR are used in the manufacture of tyres for automobiles.
Shen Hua Chemical in
Shen Hua Chemical has a 72,000 tonne/year BR plant at
“With BD at $4,000/tonne, we cannot cover the raw material costs for BR and if the BD price continues to rise, our margins for our SBR plant will also be wiped out,” said a company source.
TSRC, which is also feeling the strain from soaring BD costs, intends to shut its 60,000 tonne/year BR plant in August for a month of maintenance, said a company source.
“Feedstock BD costs have jumped up so much recently and we have no choice but to shut down our BR plant or we will lose money,” a company source at TSRC said.
Tight supply arising from unplanned cracker outages in
Korean BD suppliers have been shipping out several thousand tonnes to the
US is saddled with short BD supply, with less of the olefin being produced when ethane gas is used as feedstock for crackers, instead of naphtha. The feedstock switch was made because the
Formosa Petrochemical Corp’s (FPCC) 109,000 tonne/year BD extraction unit, along with an upstream 700,000 tonne/year No 1 cracker, has been shut since 12 May, when a fire broke out at the company’s petrochemical complex in Mailiao.
Safety checks are currently ongoing at the plants in Mailiao.
Meanwhile, the company also plans to bring forward a planned turnaround of its 1.2m tonne/year No 3 cracker, which has a 176,000 tonne/year BD extraction unit, from September to mid-August. It will be a 40- to 45-day maintenance.
($1 = €0.70)
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