(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.