30 May 2013 07:32 [Source: ICIS news]
SINGAPORE (ICIS)--South Korea’s LG Chem plans to cut output at its 180,000 tonne/year butadiene rubber (BR) plant in Daesan to 60-70% capacity if prices fall below $2,100/tonne (€1,617/tonne), a company source said.
BR prices averaged $2,175/tonne CFR (cost & freight) NE (northeast) Asia on 23 May, according to ICIS.
"If BR prices fall below $2,100/tonne CFR NE Asia, we will consider reducing the operating rate to 60-70% capacity," the source said.
The plant is currently running at 90-100% capacity, the source added.
Weak market conditions and a sluggish automotive sector have weighed down BR prices, industry sources said.
BR prices have dropped by 16% since early March when prices averaged $2,600/tonne CFR NE Asia on 7 March, ICIS data showed.
($1 = €0.77)
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