05 June 2012 06:01 [Source: ICIS news]
By Helen Yan
With supply diminishing, BD prices may get a reprieve and bottom out in June, and possibly stage a rebound in July, they said.
Spot BD prices have declined by $600/tonne (€480/tonne), or 24%, from early May to $1,850-1,900/tonne CFR (cost and freight) northeast (NE)
BD spot prices have been on a roller-coaster ride over the past seven months – dipping to $1,550/tonne CFR NE Asia in November 2011, then rallying to $4,000/tonne CFR NE Asia in February 2012, before steadily plummeting from March to May this year because of poor demand amid uncertainties in the global economy.
“The month of June may see the BD price falling to $1,500/tonnes CFR or lower as several downstream synthetic rubber plants have either cut or shut down,” a trader said.
Among the synthetic rubber producers that either shut their plants or cut their production because of poor market conditions are
“We are pushing for a lower BD price at $1,500/tonne CFR NE Asia for late-June shipment as demand is very weak and supply is ample,” a Chinese synthetic rubber producer said.
But weak demand may be offset by shrinking supply, as several cracker operators and BD producers in
The company’s other two crackers, with ethylene capacities of 700,000 tonne/year and 1.03 m tonnes/year, are currently running at reduced capacity.
Meanwhile, YNCC has also reduced operating rates at its three naphtha crackers in Yeosu to 90% of capacity because of poor margins.
($1 = €0.80)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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