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(ICIS) -- Butadiene (BD) spot prices in
Asia may bottom out soon and stage a rebound in December because of tightening
supply, as regional crackers cut production, industry sources said on
Wednesday. BD values have tumbled by more than 60%, shedding $2,700/tonne
(?1,998/tonne), from July to $1,550-1,600/tonne CFR (cost and freight) northeast
(NE) Asia in the week ending 11 November, according to ICIS.
Major BD producers in the region, including South Korea’s Yeochun NCC (YNCC)
and Taiwan’s Formosa Petrochemical Corp (FPCC), have reduced the operating rates
at their crackers to about 80% of capacities.
In South Korea, YNCC plans to run its 240,000 tonne/year BD plant at
reduced rates of 70-80% for 10 days from 20 November. The plant is currently
running at full capacity. In Taiwan, Formosa is maintaining the operating rates
at its three crackers in Mailiao at 80% of capacity.
Perspectives of development of polymer markets, pricing issues and other
important aspects will be discussed at The Polymers
Summit-2011, which will be held in Moscow on November 30, 2011 at the
Ritz Carlton Hotel. The Summit will be organized by MRC with the support of
ICIS. The main idea of the Summit is to find a "the golden mean" between
producers and converters. When producers receive exactly such margin of
production, which helps them to invest in production expansion in order to
substitute polymers imports, and the converters receive such price of feedstock
that helps them to compete imported finished products. The Summit site gives an
access to the live video of the Summit, speakers" presentations, as well as
opportunities to ask questions or make appointments to any Summit
partcipant.
mrcplast.com
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