02 July 2013 03:37 [Source: ICIS news]
SINGAPORE (ICIS)--Korea Kumho Petrochemical Corp (KKPC) will further cut the operating rate of its butadiene rubber (BR) plants by another 10-20 percentage points in July because of poor demand, a company source said.
“We will run our BR plants at about 50% capacity in July, down from 60-70% capacity in June because of poor market conditions,” the company source added.
The South Korean company has two BR plants in Yeosu with a combined BR capacity of 340,000 tonnes/year.
The smaller BR plant has a capacity of 120,000 tonnes/year, while the other BR plant has a capacity of 220,000 tonnes/year.
BR spot prices have dropped by 11% or $225/tonne (€173/tonne) since early June to average $1,900/tonne CFR (cost & freight) NE (northeast) Asia on 28 June, according to ICIS data.
On 6 June, BR prices averaged at $2,125/tonne CFR NE Asia, ICIS data showed.
($1 = €0.77)
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