09 May 2013 06:12 [Source: ICIS news]
TAIPEI (ICIS)--China’s Zibo Qixiang Tengda Chemical plans to delay the start-up of its 50,000 tonne/year polybutadiene rubber (PBR) unit in Zibo, Shandong province, to July or August because of equipment issues, a company source said on Thursday.
“It is behind its original May schedule,” the source said at the sidelines of the Asia Petrochemical Industry Conference (APIC) 2013, which runs on 9-10 May in Taiwan.
The source added that the producer’s concern about margins was another reason for the decision to delay the plant’s start-up.
PBR prices were assessed at yuan (CNY) 13,400-14,100/tonne ($2,182-2,296/tonne) EXWH (ex-warehouse) east China on 8 May, according to ICIS data.
However, the cost to produce PBR is around CNY14,330/tonne, based on the current feedstock butadiene (BD) price of CNY11,000/tonne ex-tank east China, data from ICIS China shows.
Zibo Qixiang is the sole on-purpose BD producer with commercial operations in China. The producer has a total BD nameplate capacity of 100,000 tonnes/year and it plans to expand that to 150,000 tonnes/year by 2013.
($1 = CNY6.14)
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