Taiwan’s TSRC further cuts SBR unit ops to 50% on eroded margins

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)

By: Helen Yan
+65 6780 4359

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