S Korea’s Kumho shuts synthetic rubber plants for maintenance

SINGAPORE (ICIS)--Asia’s largest synthetic rubber producer, Kumho Petrochemical of South Korea, has shut its rubber plants in Ulsan and Yeosu for scheduled maintenance, a company source said on Friday.

Its 481,000 tonne/year styrene butadiene rubber (SBR) plant and 50,000 nitrile rubber (NBR) tonne/year in Ulsan were taken off line on 6 October and will be down up to 20 October, the source said.

The company’s 342,000 tonne/year butadiene rubber (BR) plant in Yeosu, meanwhile, was shut on 4 October and will not be operating up to 24 October, the source said.

Kumho’s plant shutdowns will likely put more downward pressure on the prices of butadiene (BD) because synthetic rubber producers are the major consumers of BD in Asia.

“The feedstock BD price will face more downside pressure in October as demand is weak and there is ample supply,” a trader said.

BD prices have declined by $700/tonne since early September to $2,700-2,800/tonne CFR (cost and freight) northeast (NE) Asia in the week ended 30 September, ICIS data showed.

“We expect BD prices to fall further in October to around the low $2,000’s/tonne CFR NE Asia as buyers seem to have limited spot appetite,” another trader said.

($1 = €0.74)

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