23 October 2013 06:50 [Source: ICIS news]
SINGAPORE (ICIS)--Taiwan Synthetic Rubber Corp (TSRC) has further cut the operating rate of its 100,000 tonne/year styrene butadiene rubber (SBR) plant in Kaohsiung, Taiwan, to 50% of capacity because of eroded margins, a company source said on Wednesday.
“We have reduced the SBR plant operating rate to 50% from this week till the end of October because of the rising costs of feedstock BD,” the source added.
The plant was running at a reduced rate of 70% since early October.
The Taiwanese producer’s margins have been eroded because of escalating feedstock butadiene (BD) costs.
The feedstock BD spot prices have increased by 27% since 13 September to average $1,695/tonne (€1,237/tonne) CFR (cost & freight) northeast (NE) Asia on 18 October, ICIS data showed.
On the other hand, non-oil grade 1502 SBR prices have increased by 12% since mid-September to average $2,020/tonne CIF (cost, freight & insurance) China on 16 October, according to ICIS.
Feedstock BD costs make up about 70% of the composition and production costs of SBR.
($1 = €0.73)
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