08 May 2012 09:22 [Source: ICIS news]
Near-record feedstock methyl isobutyl ketone (MIBK) prices, together with a slight softening in demand from tyre makers for rubber chemical additives, have prompted the company’s decision to reduce its PPD output, the source said.
The company may further curtail its PPD operating rate in June, should MIBK prices strengthen further, because Sinorgchem is facing difficulty in fully transferring the increase in the feedstock costs to its downstream buyers, the source added.
Jiangsu Sinorgchem is
Spot MIBK prices have outpaced the gains in feedstock acetone prices to reach about $2,000/tonne (€1,540/tonne) CFR China, fast approaching the record high reached in August 2008.
MIBK’s all-time high was at an average of $2,175/tonne CFR China for the weeks ended 12 August, 19 August and 26 August 2008, according to ICIS data.
MIBK prices have risen 25.4% this year because of tight supply in
Upstream acetone prices have gained 11% percent this year to reach an average of $1,050/tonne CFR China for the week ended 4 May, according to ICIS data.
Jiangsu Sinorgchem operates two PPD plants in
The two PPD plants in
Sinorgchem operates a third rubber chemicals plant in
($1 = €0.77)
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