Butadiene prices soared Asian synthetic rubber enterprises shut down and reduced production
due to the continuous high butadiene prices in Asia, and the rubber manufacturers are on the verge of loss in industrial cooperation, some synthetic rubber enterprises have made it clear that they are considering reducing production or shutting down devices for maintenance in July and August in order to protect themselves
due to the unplanned shutdown of cracking units in Taiwan, China and Singapore and strong market demand in the United States, butadiene supply in Asia was tight and prices soared. A fire broke out in a petrochemical complex of Formosa Plastics in Mailiao on May 12 this year, resulting in the shutdown of a 700000 T/a No. 1 cracking unit and a 109000 T/a butadiene extraction unit. At the same time, Formosa Petrochemical also plans to advance the shutdown and overhaul time of 1.2 million T/a No. 3 cracking unit and a 176000 T/a butadiene extraction unit from September to mid August, and the whole shutdown and overhaul time is expected to be 40-45 days. In Singapore, shell's 800000 ton/year mixed feed cracking unit on Bukong island will be closed in August for a one month overhaul. There is a set of butadiene extraction unit with a capacity of 155000 T/a downstream of the cracking unit. In addition, Korean butadiene suppliers have exported thousands of tons of butadiene to the United States in recent months, exacerbating the tight supply situation in the Asian market. Affected by the large-scale development of shale gas, the raw materials of cracking units in the United States tend to be lighter, and the output of butadiene decreases significantly
affected by the above factors, the price of butadiene soared. According to the ICIS price report, since April 1, the price of butadiene in Asia has increased by 1200 US dollars/ton. On July 3, the spot price of butadiene in Asia rose to 4200 ~ 4300 US dollars/ton (CFR, Northeast Asia), which made synthetic rubber manufacturers miserable. The 410000 T/a butadiene of Jinhu petrochemical, the largest synthetic rubber manufacturer in Asia, plugs the transformer plug into the 220V power socket, and the rubber (BR) device plans to reduce the operating rate from July. Jinhu Petrochemical's journey is 500-600mm. The insider said: "the company's br strength value and loading rate show that the business has suffered losses. We have no choice. If the butadiene price continues to rise, the company may shut down the br unit in August."
China Shenhua chemical and Taiwan synthetic rubber company will shut down the plant for maintenance in July and August. Shenhua chemical's 72000 T/a br unit in Nantong, Jiangsu Province is scheduled to be shut down for maintenance in July; At the same time, a 200000 t/a styrene butadiene rubber (SBR) unit under the company will be shut down for maintenance in August. Shenhua chemical said that if the price of butadiene rises to $4000/ton, the company's br business will suffer a loss. If the price of butadiene continues to rise, the SBR business will also suffer a loss. Due to excessive cost pressure, Taiwan synthetic rubber company also plans to shut down a 60000 ton/year br unit in August for a one month shutdown and overhaul
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