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(ICIS) -- Synthetic rubber producers in
Asia are mulling cutting output or shutting plants for maintenance in July and
August, as costs of feedstock butadiene (BD) continued to spike, wiping out
margins, industry sources said on Wednesday.
Losses will likely be incurred with BD prices hitting an all-time high of
USD 4.000/tonne (EUR 2.800/tonne) CFR (cost and freight) Asia on 24 June. BD
prices have shot up by USD 1.200/tonne from 1 April, according to ICIS data.
Korea Kumho Petrochemical Co (KKPC), Asia’s largest synthetic rubber
producer, plans to halve production at its 410 KTa butadiene rubber (BR) plant
next month, said a company source.
“Our BR margins are now negative and we
have no choice but to cut our BR production output by 50% in July, and may shut
down our BR plant in August if the BD price continues to rise,” the source
said.
mrcplast.com
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