China’s Shen Hua Chemical to run SBR plant at 80% of capacity

18 April 2012 07:37  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Shen Hua Chemical Industrial will run its 180,000 tonne/year styrene butadiene rubber (SBR) plant in Nantong at about 80% of capacity until June because of poor market conditions, a company source said on Wednesday.

“We will run the SBR plant at this lower rate of about 80% for the whole of the second quarter as we do not expect demand to improve until the third quarter,” the source added.

SBR prices have been under pressure to weaken because of poor market sentiment and falling demand.

SBR is a major feedstock for the production of tyres for the automotive industry, and Chinese tyre factories have cut their operating rates because of waning demand in their major markets, Europe and the US, industry sources said.

Tyre export sales to Europe and the US have dropped and tyre makers in China are cutting down their operating rates and SBR consumption,” a Chinese SBR producer said.

For the week ended 11 April, non-oil grade SBR 1502 prices were at $3,400-3,450/tonne (€2,584-2,622/tonne) CIF (cost, insurance & freight) China, down by $100-150/tonne from 14 March, according to ICIS.

($1 = €0.76)

By: Helen Yan
+65 6780 4359

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