Asia butadiene faces downward press from SBR, SBS turnarounds, run cuts

Asian butadiene prices face descending pressure over the 2nd quarter as several producers of downstream products either shut their respective plants for prepared upkeep or reduce their runs.

In China, Lanzhou Petrochemical prepares to shut its styrene-butadiene rubber at Lanzhou, Gansu province, from April 15 to Might 3, for scheduled upkeep, a sector source stated. The plant has a style ability of 100,000 mt/year.

here , Shanghai Gaoqiao Petrochemical, means to close its 100,000 mt/year SBR plant at the Shanghai Chemical Industry Park in Caojing in May for about a month.

The primary feedstocks for SBR are butadiene (60%) and also styrene (30%).

In South Korea, Kumho Petrochemical intends to cut production rates at its styrene-butadiene-styrene/thermoplastic elastomer plant at Yeosu, from regarding 85-90% in April to about 50% in May, of its design capability of 70,000 mt/year, pointing out inadequate margins.

A resource at Kumho stated SBS costs in China hovered at around $2,700/ mt CFR, while area butadiene costs in East China stood at Yuan 20,500/ mt or regarding $2,610/ mt on an import parity basis.

As an outcome of the manufacturing cut, regarding 3,000 mt/month of butadiene feedstock will be maximized.

In Taiwan, Lee Chang Yung Chemical Corp., or LCY, is operating its TPE plant at Kaohsiung at about 90% of its style capability of 140,000 mt/year.

LCY is making an undisclosed amount of TPE, or thermoplastic elastomers, utilizing styrene-isoprene-styrene, lowering its dependence on butadiene. TPE can be made from either SBS or SIS.

Nevertheless, the descending stress on area butadiene rates will be limited as a result of lowered production in Asia.

For example, South Korea's Yoochun NCC closed its 220,000 mt/year butadiene plant at Yeosu on Tuesday for set up upkeep that will certainly take around a month to finish.

Considering that March 21, Shell Chemicals has declared a force majeure on butadiene production from its 155,000 mt/year plant at the Covering Eastern Petrochemicals Complex on Singapore's Pulau Bukom island.

Shell's naphtha-fed vapor biscuit, which feeds the butadiene plant, was shut on March 18 as a result of mechanical problems. Resources near the company had stated Covering is intending to reboot the biscuit on April 10.