As raw material butadiene prices continue to rise, squeezing profits, Asian synthetic rubber producers are cutting production to reduce losses.
Industry sources said recently that due to rising raw material butadiene prices and squeezed profits, Asian synthetic rubber producers are cutting production.
A Korean synthetic rubber manufacturer stated: “Since raw material butadiene prices have risen to more than US$3,000/tonne (€2340/tonne), it is very difficult to raise the price of synthetic rubber. As a result, synthetic rubber production is no longer profitable, even. Loss."
As of the week of January 12, Asian spot butadiene prices were 3050-3100 US dollars / ton (CFR Northeast Asia), compared with the beginning of December 2011 rose 950 US dollars / ton, up about 45%. As of January 12th week, the spot price of butadiene rubber is 3250-3400 US dollars / ton (CFR Northeast Asia). According to industry sources, the current spread is too small, and butadiene rubber producers need to raise the price of the product by 600-700 US dollars/ton higher than that of butadiene in order to obtain profits.
South Korea’s LG Chemical Company stated that the company’s 50,000-ton/year butadiene rubber production line in Dashan has been parked and it will be stopped for about two weeks until the end of January. Asia’s largest synthetic rubber producer, Jinhu Petrochemical Company, currently has a 450,000-ton/year styrene-butadiene rubber plant, a 400,000-ton/year butadiene rubber plant and a 100,000 tons/year nitrile rubber plant in terms of production capacity. 80% or so.
According to industry sources, in China, due to poor profitability, some of the devices of synthetic rubber producers (including Taizhou-Ube (Nantong) Chemical Co., Huayu Rubber Co., Ltd., and Ningbo Shunze Rubber Co., Ltd.) do not reduce the device load rate. Discontinued. According to a person from Taizhou-Ube (Nantong) Chemical Company, our profits have fallen to negative profits, so in January our 72,000-ton/year butadiene rubber plant was operating at about 70% of its production capacity. Will completely stop. The person of China Huayu Rubber Company stated that the company had stopped Shandong's two butadiene rubber production lines at the beginning of this month, with a total capacity of 160,000 tons/year. Ningbo Shunze Rubber Co., Ltd. will stop Zhejiang's 50,000 t/y nitrile rubber plant from January 16 to February 5.
Industry sources said recently that due to rising raw material butadiene prices and squeezed profits, Asian synthetic rubber producers are cutting production.
A Korean synthetic rubber manufacturer stated: “Since raw material butadiene prices have risen to more than US$3,000/tonne (€2340/tonne), it is very difficult to raise the price of synthetic rubber. As a result, synthetic rubber production is no longer profitable, even. Loss."
As of the week of January 12, Asian spot butadiene prices were 3050-3100 US dollars / ton (CFR Northeast Asia), compared with the beginning of December 2011 rose 950 US dollars / ton, up about 45%. As of January 12th week, the spot price of butadiene rubber is 3250-3400 US dollars / ton (CFR Northeast Asia). According to industry sources, the current spread is too small, and butadiene rubber producers need to raise the price of the product by 600-700 US dollars/ton higher than that of butadiene in order to obtain profits.
South Korea’s LG Chemical Company stated that the company’s 50,000-ton/year butadiene rubber production line in Dashan has been parked and it will be stopped for about two weeks until the end of January. Asia’s largest synthetic rubber producer, Jinhu Petrochemical Company, currently has a 450,000-ton/year styrene-butadiene rubber plant, a 400,000-ton/year butadiene rubber plant and a 100,000 tons/year nitrile rubber plant in terms of production capacity. 80% or so.
According to industry sources, in China, due to poor profitability, some of the devices of synthetic rubber producers (including Taizhou-Ube (Nantong) Chemical Co., Huayu Rubber Co., Ltd., and Ningbo Shunze Rubber Co., Ltd.) do not reduce the device load rate. Discontinued. According to a person from Taizhou-Ube (Nantong) Chemical Company, our profits have fallen to negative profits, so in January our 72,000-ton/year butadiene rubber plant was operating at about 70% of its production capacity. Will completely stop. The person of China Huayu Rubber Company stated that the company had stopped Shandong's two butadiene rubber production lines at the beginning of this month, with a total capacity of 160,000 tons/year. Ningbo Shunze Rubber Co., Ltd. will stop Zhejiang's 50,000 t/y nitrile rubber plant from January 16 to February 5.
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