South Korea’s Kumho Petrochemical cuts ops on weak demand

23 May 2012 03:47  [Source: ICIS news]

SINGAPORE (ICIS)--Asia’s largest synthetic rubber producer, South Korea’s Kumho Petrochemical (KKPC), has further cut the operating rates of its synthetic rubber plants because of weak market conditions, a company source said on Wednesday.

It has cut the operating rate of its 430,000 tonne/year styrene butadiene rubber (SBR) plant to 40-50% of capacity and its 350,000 tonne/year butadiene rubber (BR) plant to 60% of capacity, the source added.

Both the SBR and BR plants were running at reduced rates since early May.

“It is an emergency situation because of the continued weakness in demand. Both these plants will run at the reduced rates for at least two weeks until mid-June,” the source added.

SBR non-oil grade 1502 spot prices were at $2,900-3,000/tonne (€2,291-2,370/tonne) CIF (cost, freight, insurance) China in the week ended 16 May, down by $400-450/tonne since 18 April, ICIS data showed.

BR spot prices were at $3,300-3,400/tonne CFR (cost and freight) northeast (NE) Asia in the week ended 17 May, down by $350/tonne since 19 April, ICIS data showed.

($1 = €0.79)

By: Helen Yan
+65 6780 4359

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