22 March 2012 02:44 [Source: ICIS news]
SINGAPORE (ICIS)--South Korea’s LG Chem may further cut operating rates at its 180,000 tonne/year butadiene (BR) plant in Daesan to 60-70% in April from 80-95% currently, if margins do not improve, a company source said on Thursday.
High costs of feedstock butadiene (BD) have been forcing LG Chem to run the BR plant at reduced rates, the source said.
BD was assessed at $3,400-3,450/tonne (€2,584-2,622/tonne) CFR (cost and freight) NE (northeast) Asia in the week ended 16 March, ICIS data showed.
“Our margins are being squeezed by the high feedstock BD costs and unless we can achieve a price hike for BR, we may have no choice but to further reduce the BR plant operating rate in April,” the source said.
LG Chem has hiked its April BR offers to $4,200/tonne CFR NE Asia.
BR prices were at $3,800-3,900/tonne CFR NE Asia in the week ended 15 March, according to ICIS.
($1 = €0.76)
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