Malaysia’s Titan Chemicals to run BD unit at 90% in June

05 June 2012 08:04  [Source: ICIS news]

SINGAPORE (ICIS)--Malaysia’s Titan Chemicals is running its 100,000 tonne/year butadiene (BD) unit at Pasir Gudang in Malaysia at 90% of capacity in June this year because of poor margins, a company source said on Tuesday.

The company is expected to run the plant at 90%  of capacity throughout the month after reducing its run rate on 1 June, the source said, adding that the unit was previously running at 100%.

BD spot prices have plummeted since February this year when prices hit $4,000/tonne (€3,200/tonne) CFR (cost and freight) northeast (NE) Asia.

In the week ended 1 June, BD spot prices were at $1,850-1,900/tonne CFR NE Asia, down by $600/tonne since 4 May, ICIS data showed.

The company’s production loss of 1,000 tonnes during this period is not expected to have a significant impact on pricing, industry sources said.

Titan Chemicals is the latest regional producer to cut the operating rate of its BD plant because of poor market conditions, they added.

Other BD producers who have reduced their operating rates include South Korea’s Yeochun NCC (YNCC) and Taiwan’s Formosa Petrochemical Corp (FPCC) and CPC Corp.

($1 = €0.80)

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By: Helen Yan
+65 6780 4359

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