17 April 2013 07:36 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwan Synthetic Rubber Corp (TSRC) will resume production of its 100,000 tonne/year styrene butadiene rubber (SBR) plant at Kaohsiung, Taiwan, on 22 April, after shutting in early April for scheduled maintenance, a company source said on Wednesday.
“We shut the plant for 20 days for maintenance and it will restart next Monday [22 April], but we may consider running it at a reduced rate in May if market conditions do not improve,” the source said.
Non-oil grade SBR 1502 prices have been dropping in the past month because of weak demand, falling feedstock butadiene (BD) prices and declining natural rubber (NR) prices.
Feedstock BD prices fell to $1,300-1,350/tonne (€988-1,026/tonne) CFR (cost & freight) NE (northeast) Asia in the week ended 12 April, down by about $700/tonne since 1 March while tyre grade SMR 20 NR prices were at $2,360/tonne FOB (free on board) Malaysia at the Malaysia Rubber Exchange on 16 April, down by more than $500/tonne since 1 March.
NR and SBR are substitutes for each other in the production of tyres for the automotive industry and their prices tend to impact each other.
Spot offers of non-oil grade SBR 1502 have fallen to around $2,100/tonne CIF (cost, freight & insurance) China, down by about $300/tonne over the past month, according to ICIS.
($1 = €0.76)
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