Singapore (Platts)--7Feb2013/525 am EST/1025 GMT
China's Shen Hua Chemical Industrial cut runs at its 200,000 mt/year styrene-butadiene-rubber plant at Nantong to 90% of capacity Wednesday from 100% earlier, a company source said Thursday. The lower rate will continue throughout February due to poor production margins and weak demand from local tiremakers, the source said. Shen Hua shut its butadiene rubber plant at Nantong February 1 for 35 days citing similar concerns. Butadiene feedstock prices stood at $1,950/mt CFR China February 1, up $90/mt from a week earlier, according to Platts data. Weekly ESBR 1502 prices were assessed up $15/mt over the same period at $2,350/mt CFR Northeast Asia. Article continues below...Sign up to Asian Petrochemicalscan today. Asian Petrochemicalscan provides weekly market updates, commentary and assessments ranging from naphtha feedstocks to aromatics, olefins, and polymers in Southeast Asia, Korea, Taiwan and Japan.
China's Shen Hua Chemical Industrial cut runs at its 200,000 mt/year styrene-butadiene-rubber plant at Nantong to 90% of capacity Wednesday from 100% earlier, a company source said Thursday. The lower rate will continue throughout February due to poor production margins and weak demand from local tiremakers, the source said. Shen Hua shut its butadiene rubber plant at Nantong February 1 for 35 days citing similar concerns. Butadiene feedstock prices stood at $1,950/mt CFR China February 1, up $90/mt from a week earlier, according to Platts data. Weekly ESBR 1502 prices were assessed up $15/mt over the same period at $2,350/mt CFR Northeast Asia.
Article continues below...
Asian Petrochemicalscan provides weekly market updates, commentary and assessments ranging from naphtha feedstocks to aromatics, olefins, and polymers in Southeast Asia, Korea, Taiwan and Japan.
SBR producers are concerned about the narrow $400/mt price spread between the two as it can result in SBR production cuts or shutdowns -- producers typically need a spread of $400-$500/mt to break even.--Clement Choo, clement_choo@platts.com--Edited by Wendy Wells, wendy_wells@platts.com
Tweet
@PlattsPetchems on Twitter