China’s Shen Hua to cut op rate of SBR plant to 80% in June
30 May 2012 04:39 [Source: ICIS news]
SINGAPORE (ICIS)--?xml:namespace>China’s Shen Hua Chemical Industrial will reduce the operating rate of its 180,000 tonne/year styrene butadiene rubber (SBR) plant in Nantong to 80% of capacity in June because of poor demand, a company source said on Wednesday.
It is running at 100% of capacity in May, according to the source.
“Demand is weak and we have too much inventories, so we will cut the operating rate to 80% of capacity in June,” the source added.
SBR non-oil grade 1502 prices were at $2,700-2,800/tonne (€2,160-2,240/tonne) CIF (cost, freight and insurance) China in the week ended 23 May, down by $600/tonne in the past month, ICIS data showed.
SBR is a major feedstock for the production of tyres for the automotive industry and the downstream tyre factories in China have cut back on their production because of falling tyre demand in Europe and the US.
Europe and the US are major markets for tyre makers based in China.
($1 = €0.80)By: Helen Yan+65 6780 4359
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