SBR, SBS turnarounds, run cuts to pressure Asian butadiene in H2

11-Apr-11

Asian butadiene prices face downward pressure over the second quarter as several producers of downstream products will shut their respective plants for planned maintenance or reduce run rates, as per Platts. The main feedstocks for SBR are butadiene (60%) and styrene (30%). In China, Lanzhou Petrochemical plans to shut its 100,000 tpa styrene butadiene rubber at Lanzhou, Gansu province, from April 15 to May 3, for scheduled maintenance. Shanghai Gaoqiao Petrochemical plans to shut its 100,000 tpa SBR plant at the Shanghai Chemical Industry Park in Caojing in May for about a month. In South Korea, Kumho Petrochemical plans to cut production rates at its styrene-butadiene-styrene/thermoplastic elastomer plant at Yeosu, from about 85-90% in April to about 50% in May, of its design capacity of 70,000 tpa on poor margins. As a result of the production cut, about 3,000 mt/month of butadiene feedstock will freed up. In Taiwan, Lee Chang Yung Chemical Corp. is operating its TPE plant at Kaohsiung at about 90% of its design capacity of 140,000 tpa. However, downward pressure on spot butadiene prices will be limited due to reduced production in Asia- South Korea's Yeochun NCC shut its 220,000 tpa butadiene plant at Yeosu for about a month long scheduled maintenance shutdown. Since March 21, Shell Chemicals has declared a force majeure on butadiene production from its 155,000 tpa plant at the Shell Eastern Petrochemicals Complex on Singapore's Pulau Bukom island. Shell's naphtha-fed steam cracker, which feeds the butadiene plant, was shut March 18 due to mechanical problems.