18 September 2013 04:03 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Shen Hua Chemical Industrial plans to run its 180,000 tonne/year styrene butadiene rubber (SBR) plant in Nantong, China, at a reduced rate of 60% after a planned turnaround next month because of margin erosion, a company source said on Wednesday.
“We have no margins because of the high BD [butadiene] price, so we plan to run the SBR plant on a reduced rate of 60% of capacity till the end of the year, after the plant turnaround, ” the source added.
The SBR plant will be shut from 20 September till 13 October for maintenance, the source said.
BD spot prices have increased by 15% since last month, but the non-oil grade 1502 SBR prices have only risen by 4% during the same period, according to ICIS data.
Non-oil grade 1502 SBR prices averaged $1,800/tonne (€1,350/tonne) CIF (cost, freight and insurance) China on 11 September compared with $1,725/tonne CIF China on 21 August, ICIS data showed.
BD spot prices averaged $1,325/tonne CFR (cost and freight) northeast (NE) Asia on 13 September, compared with $1,150/tonne CFR NE Asia on 23 August, ICIS data showed.
($1 = €0.75)
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