15 June 2012 09:38 [Source: ICIS news]
SINGAPORE (ICIS)--China’s major nitrile rubber (NBR) producer, Lanzhou Petrochemical, has postponed a shutdown of its NBR plants in Gansu province, a company source said on Friday.
The shutdown may be delayed to the end of June or early July, but there were no further details, the source added.
Lanzhou Petrochemical originally planned to shut its 50,000 tonne/year NBR plant from 12 June to 16 July for maintenance, and shut its smaller 15,000 tonne/year NBR plant from 26 June to 16 July.
Meanwhile, Lanzhou Petrochemical also cut offers of NBR from 5 June by yuan (CNY) 1,000/tonne ($157/tonne) to CNY21,500/tonne EXWH (ex-warehouse) on weak demand.
The maintenance delay and resulting oversupply, as well as decreasing offers from Lanzhou Petrochemical, are likely to dampen market confidence, leading to a fall in NBR values.
Traders said they were offloading cargoes at levels lower than the producer’s offers in order to clear stocks, in fear that Lanzhou Petrochemical would continue to cut offers.
Market prices for Lanzhou Petrochemical’s goods were at around CNY20,900-21,200/tonne EXWH in eastern and northern China.
($1 = CNY6.37)
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