22 March 2013 07:29 [Source: ICIS news]
SINGAPORE (ICIS)--China's Lanzhou Petrochemical, the largest nitrile rubber (NBR) producer in Gansu province, northwest China, has reduced its supply of the material as a result of two plant' showdowns, a company source said on Friday.
The producer will shut its 50,000 tonne/year plant in Gansu in late March for 20 days to carry out maintenance. Production is expected to resume by the middle of April and the company will produce grade 3305 and 2907 NBR, the source said.
Meanwhile, the company has taken off line its 15,000 tonne/year plant in Gansu on 5 March for maintenance, according to the source.
The 15,000 tonne/year unit, which is producing grade N41 will be restarted on 25 March to switch to produce grade N21L.
The company also plans to produce hard NBR for 15 days from 25 April onwards and later switch back to grade N41, the company source added.
The turnaround and switching of different grades will result in a reduced supply from March to May with estimated output loss of 4,000 tonnes, market sources said.
The tightening of supply will ease pressure on falling prices in the domestic market, the sources added.
Lanzhou Petrochemical cut offers of its NBR to CNY18,500-18,700/tonne ($2,974-3,006/tonne) EXWH (ex-warehouse) from yuan (CNY) 19,700-19,900/tonne from the past week.
($1 = CNY6.22)
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