Taiwan’s TSRC cuts SBR plant output on weak demand

04 July 2012 04:28  [Source: ICIS news]

SINGAPORE (ICIS)--Taiwan’s TSRC has cut the operating rate of its 100,000 tonne/year styrene butadiene rubber (SBR) plant in Kaohsiung, Taiwan, to 70-80% of capacity in July because of poor market conditions, a company source said on Wednesday.

The plant was running at 100% of capacity in June, the source added.

“Fundamental demand for SBR is still slow and it is difficult to pass on the rising costs of the feedstock butadiene (BD) to our customers,” the source said.

Feedstock BD prices have increased by $400/tonne (€316/tonne) since mid-June to $2,300/tonne CFR (cost and freight) northeast (NE) Asia, ICIS data showed.

Meanwhile, spot offers for non-oil grade 1502 SBR have increased by $50-100/tonne to $2,800/tonne CFR Asia for fresh July shipments, but buying interest at this level remains limited, industry sources said.

($1 = €0.79)

By: Helen Yan
+65 6780 4359

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