S Korea's Kumho P&B Chem cuts BPA output by 20-30 percentage points

06 November 2012 07:38  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s Kumho P&B Chemicals has reduced the operating rate of its 130,000 tonne/year No 2 and 150,000 tonne/year No 3 bisphenol A (BPA) lines in Yeosu by 20-30 percentage points, a company source said on Tuesday.

Kumho decided to cut the operating rate of its plant to about 70% after bringing it back on stream on 25-26 October from a scheduled turnaround because of terrible margins, the source said.

The current spread from feedstock benzene is only around $350/tonne (€273/tonne), which is insufficient to cover even their variable cost, the source added.

BPA producers are faced with increasingly squeezed margins because of firming benzene cost and poor downstream epoxy resins and polycarbonate (PC) demand, market players said.

Taiwan Prosperity Chemical Corp (TPCC) moved forward its scheduled turnaround to 1 November because of poor margins. The plant is expected to remain off line until mid-January 2013.

($1 = €0.78)

By: Christina Siantar
+65 6780 4327

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