Taiwan’s TSRC mulls further cuts in SBR run rates in March

27 February 2013 06:19  [Source: ICIS news]

SINGAPORE (ICIS)--Taiwan Synthetic Rubber Corp (TSRC) may further cut production at its 100,000 tonne/year styrene butadiene rubber (SBR) plant in Kaohsiung next month unless market conditions improve, a company source said on Wednesday.

“It depends on the market conditions whether we will further reduce the SBR operating rate to70-80% of capacity in March,” the source said, citing that the plant is running at 90% of capacity in February.

“The high feedstock butadiene costs have eroded our margins, and BD prices above $2,000/tonne are not workable,” the source said.

Prices of feedstock BD averaged $2,050/tonne (€1,579/tonne) CFR (cost and freight) northeast (NE) Asia on 22 February, up by $400/tonne from 4 January, according to ICIS data. SBR prices, on the other hand, have not kept pace with the spike in BD values.

Non-oil grade 1502 SBR prices were assessed at $2,450-2,500/tonne CIF (cost, insurance and freight) China on 20 February, ICIS data showed.

SBR producers have hiked their March offers this week for non-oil grade 1502 SBR to $2,600-2,700/tonne CIF China.

($1 = €0.77)

By: Helen Yan
+65 6780 4359

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