S Korea’s LG Chem may cut BR output to 60-70% if prices fall further

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)

By: Helen Yan
+65 6780 4359

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly