28 February 2013 06:08 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwan Synthetic Rubber Corp (TSRC) may reduce the operating rate of its 60,000 tonne/year butadiene rubber (BR) plant in Kaohsiung, Taiwan, to 80% of capacity in March unless market conditions improve, a company source said.
The plant has been running at 100% of capacity in February, the source added.
“It depends on the market conditions and whether demand will pick up in the second quarter,” the source added.
March BR offers of $2,700-2,800/tonne (€2,079-2,156/tonne) CFR (cost and freight) northeast (NE) Asia have met with resistance from the downstream tyre makers, industry sources said.
BR is used in the production of tyres for the automotive industry.
“Demand for BR is subdued as there are concerns over the global economy. Tyre makers are adopting a cautious stance and will be reluctant to accept a big price hike for BR as it will be difficult to pass on the costs to the consumer,” a major tyre maker said.
BR prices were at $2,500-2,600/tonne CFR NE Asia on 21 February, according to ICIS data.
($1 = €0.77)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections