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)
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