19 June 2013 08:50 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Hangzhou Zhechen Rubber plans to shut its 100,000 tonnes/year styrene butadiene rubber (SBR) plant in Hangzhou city on 28 June for nearly 20 days of regular maintenance, said a company source on Wednesday.
The SBR plant has two lines. Due to poor demand, one line has been shut since 8 June and the operating rate was decreased from 70% of capacity to 50% at the same time, the source said. The company now has only one line producing non-oil grade SBR 1502, the source added.
China SBR prices have fallen since February 2013 and market sentiment is bearish.
Prices of non-oil grade SBR 1502 were assessed as down by yuan (CNY) 5,200/tonne ($848/tonne) at yuan (CNY) 12,100-12,600/tonne on 18 June from 19 February, according to Chemease data. Prices of oil-extended SBR 1712 were at CNY10,000-10,500/tonne on 18 June, down by CNY5,400-5,500/tonne over the same period.
SBR makers said they have not seen any margins since April because of high feedstock butadiene (BD) prices and poor demand.
The shutdown may decrease domestic SBR supply, but inventory in the China market remains high, according to industry sources.
($1 = CNY6.13)
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