15 October 2013 07:41 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwan Synthetic Rubber Corp (TSRC) has cut the operating rate of its 100,000 tonne/year styrene butadiene rubber (SBR) plant in Kaohsiung, Taiwan, to 70% capacity because of eroded margins, a company source said on Tuesday.
The Taiwanese producer’s margins have been squeezed because of escalating feedstock butadiene (BD) costs.
“We have reduced the SBR plant operating rate to 70% since early October and will run at this reduced rate in November if the feedstock BD price continues to go up,” the source added.
The feedstock BD spot prices have increased by 24% since 13 September to average $1,650/tonne CFR (cost & freight) northeast (NE) Asia on 11 October, ICIS data showed.
On the other hand, non-oil grade 1502 SBR prices have increased by about 10% since mid-September to average $2,000/tonne CIF (cost, freight & insurance) China on 9 October, according to ICIS.
Feedstock BD costs make up about 70% of the composition and production costs of SBR.
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