Thailand’s BST Elastomers plans 15-28 March shutdown at BR plant

05 March 2012 05:27  [Source: ICIS news]

SINGAPORE (ICIS)--Thailand’s BST Elastomers (BSTE) plans to shut its 55,000 tonne/year butadiene rubber (BR) plant for two weeks from mid-March, citing margin erosion from high costs of feedstock butadiene (BD), a company source said on Monday.

“We cannot absorb the high feedstock BD costs. We are currently running at 70% of capacity and will shut from 15 March to 28 March,” the source said.

BD prices have raced ahead of BR prices in recent weeks, wiping out the margins of BR producers.

In the month of February, feedstock BD prices averaged $3,800/tonne (€2,888/tonne) CFR (cost and freight) NE (northeast) Asia, higher than the average BR values of $3,700/tonne CFR NE Asia, according to data from ICIS.

BR prices have to be about $600-700/tonne higher than the feedstock BD prices for BR producers to have any margins, industry sources said.

($1 = €0.76)

By: Helen Yan
+65 6780 4359

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