05 December 2013 00:19 [Source: ICIS news]
HOUSTON (ICIS)--US-based Lion Copolymer is temporarily closing its styrene-butadiene-rubber (SBR) plant in Baton Rouge, Louisiana, a source at the company confirmed on Wednesday.
A company spokesperson was not immediately available for comment.
While Lion Copolymer did not provide details on when the plant will close or how long the closure will last, one buyer said the plant will continue operating for about two weeks.
Lion Copolymer's plant has a capacity of 130,000 tonnes/year, according to a source at the company.
Market participants said the closure could be beneficial for SBR sellers, especially amid low demand from a lacklustre replacement tyre market, which drives about 75% of SBR demand.
"This will reduce the availability of product in the market and will help to have a better supply/demand balance," one source said.
The closure may impact feedstock butadiene (BD) as well.
"The consumption of Lion will be available and this will impact in supply/demand balance and pricing in the region," the source said.
Follow Tracy on Twitter
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections