(chemnet) -- China's Shen Hua Chemical Industrial shut its butadiene rubber plant in Nantong for about a month.
High butadiene feedstock costs and poor domestic demand were among the factors leading to the shutdown of the 72,000 mt/year BR plant.
Several domestic tire producers have been operating their plants at reduced rates, citing poor demand from overseas markets such as the US and Europe, and as a result, tire and rubber inventories have increased, industry sources said.
Several BR rubber producers were operating their plants at about 60-70% of capacity, a producer said.
Butadiene costs have risen as end-users have sought to secure their feedstock requirements ahead of turnarounds, both locally and overseas.
For instance, Sinopec Maoming plans to shut its No. 1 naphtha-fed steam cracker in southwestern Guangdong province over February 13-25 for scheduled maintenance.
The cracker supplies crude C4 feedstock to a 50,000 mt/year butadiene extraction unit, which will run at an undisclosed reduced rate as a result of the shutdown.