16 August 2011 07:06 [Source: ICIS news]
By Helen Yan
SINGAPORE (ICIS)--Spot prices of butadiene (BD) in Asia may rebound in September or October as supply of the material will tighten, with a number of crackers in Asia and the US due to undergo maintenance during the period, industry sources said on Tuesday.
Some producers said they expect BD prices to rise above $4,000/tonne (€2,800/tonne) towards the fourth quarter, after shedding $450/tonne over the past month.
BD prices were last assessed at $3,800-3,850/tonne CFR (cost and freight) NE (northeast) Asia in the week ending on 12 August, ICIS data showed.
“We expect BD supply to tighten in the coming months, and if demand in China and India picks up at the same time, we can see BD going up to around $4,000/tonne CFR in Asia in September or October,” said a downstream synthetic rubber producer.
Shell's Bukom cracker has a 155,000 tonne/year BD extraction unit.
FPCC’s cracker, which has a 176,000 tonne/year BD extraction unit, will be down for about 40-45 days. Meanwhile, its 700,000 tonne/year No 1 cracker, with a 109,000 tonne/year BD extraction unit, has remained shut since 12 May following a fire at the Mailiao petrochemical complex.
“Whether the BD price will fall further or rebound depends to some extent on
Meanwhile, a pick-up in demand from the
ExxonMobil will shut its 1m tonne/year
Shell will take its 835,000 tonne/year cracker at
“The Korean BD producers will likely increase their exports to the
For the rest of August, however, BD prices in
Downstream butadiene rubber (BR) plants in
BR is a major raw material used in the production of tyres for the automotive industry
Yanshan Petrochemical, Gaoqiao Petrochemical, Dushanzhi Petrochemical, LG Chem, TSRC Corp and TSRC-UBE are some of the synthetic rubber plants in
“Synthetic rubber makers are very cautious and are not buying BD at the moment as several BR plants have either cut operating rates or shut down and are adopting a wait-and see stance,” a Chinese synthetic rubber producer said.
Concerns over a possible return to global economic recession - with the
Export-oriented economies such as
($1 = €0.70)
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