21 March 2012 07:54 [Source: ICIS news]
SINGAPORE (ICIS)--Malaysia’s Titan Chemicals on Wednesday cancelled its sales tender for butadiene (BD) because of plant problems, a company source said.
“We are running the BD plant at a reduced rate because of plant problems,” the source said, but declined to disclose further details.
The sales tender is for 2,000 tonnes of BD for loading in the second half of April.
“We received an invitation to participate in the tender, but we decided not to take part as the specifications of the cargo are not suitable for us,” a Chinese trader said.
BD spot prices rebounded by $50/tonne (€38/tonne) to $3,400-3,450/tonne CFR (cost & freight) northeast (NE) Asia in the week ended 16 March after falling continually since prices hit $4,000/tonne CFR NE Asia in early February, ICIS data showed.
The rebound was due to an increase in buying momentum as downstream synthetic rubber makers sought to cover their first half-April requirements.
However, the BD price upside may be limited as the buying interest of downstream synthetic rubber producers remains weak, industry sources said.
Titan runs a 100,000 tonne/year BD plant at its site at Pasir Gudang, Malaysia.
Titan is a subsidiary of Honam Petrochamials, a major Korean olefins producer.
($1 = €0.76)
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