Asia's leading petrochemical producer in the near future be forced to cut

With the price of crude oil stands at the 140 U.S. dollars / barrel reached its highest level involvement in the rising raw material costs brought about by the operation of pressure recently, some of Asia's major petrochemical producers have said they will cut production.

Japan's Asahi Kasei was on July 7, the water will be located in Japan island of 443,000 tons / year ethylene plant operating rate fell to 95%. It is said that due to the slowdown in demand for polyethylene, as well as the high price of naphtha, ethylene plant of a gradual decline in profitability, forcing Asahi Kasei's Sanyo Mizushima petrochemical companies to cut naphtha cracker production. This is also the Asahi Kasei Corporation for the first time in 10 years to cut production of ethylene.

Thailand's Siam Cement also plans to olefin production this year will be reduced by 10%. It is reported that the company's chemical subsidiary will be located in the Thailand Industrial Park Mata House of 1,250,000 tons / year of the Commonwealth olefin plant designed to reduce the production capacity of 90% in order to reduce costs. Despite the production cuts, but Siam Cement is expected this year from the sales of petrochemical business, will remain from last year's 3.3 billion increase to 45 billion U.S. dollars, mainly due to the price of petrochemical products a substantial increase over last year. However, due to the rising costs of raw materials faster than the speed of the price of petrochemical products this year's profits will not be higher than last year's growth rate.

Japan's Mitsui Chemicals, Japan plans to close three counties at 3 purified terephthalic acid (PTA) production line in a the same time, the company plans to pre-2011 will be another PTA production line shut down permanently. This will allow companies in Japan's PTA production capacity reduced by 47%, down to 400,000 tons / year, which is the company since the beginning of 1976 in Japan, the production of PTA for the first time since cut production. In addition, Mitsui Chemicals also plans to stop China's exports to the PTA, exports accounted for about Japan's domestic output of about 40%.

As the butadiene fed up with the continuing rise in raw material prices, Asia's leading manufacturer of synthetic rubber, Korea Kumho Petrochemical Corporation also said it would cut styrene-butadiene latex (SBL), as well as styrene and butadiene block copolymer (SBS) device The operating rate. Rubber Co., Ltd. Taiwan, China Taiwan and China Shenhua Chi Mei Chemical Company also said that if prices continue to rise butadiene, will be forced to reduce the operating rate.