17 August 2011 03:49 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwanese synthetic rubber producer TSRC Corp will shut its butadiene rubber (BR) plant for one month and will run its styrene butadiene rubber (SBR) plant at a reduced rate until the end of September, a company source said on Wednesday.
“We will shut the 60,000 tonne/year BR plant on 25 August for one month for maintenance as the high feedstock butadiene [BD] costs have eroded our margins,” the source added.
Feedstock BD prices have been on a relentless upsurge since early January this year, more than doubling and hitting an all-time high at $4,300/tonne (€2,967/tonne) CFR (cost & freight) NE (northeast) Asia on 15 July, ICIS data showed.
The Taiwanese company has cut the operating rate of its 100,000 tonne/year SBR plant by 10% since early July.
“We will run the SBR plant at a reduced rate of 90% until the end of September as BD prices may rebound later and we have to factor that in,” the source added.
Although feedstock BD prices have since declined to around $3,800/tonne CFR NE Asia in the week ending 12 August, market players expect BD prices may rebound and climb up to around $4,000/tonne CFR NE Asia in September or October.
TSRC’s SBR and BR plants are located at Kaohsiung in Taiwan.
($1 = €0.69)
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