Taiwan News: Taiwan car market effects of the weak spin rubber plant and Chi Mei big moves in response to South Korea KKPC or even plant closings.

    Global automotive industry miserable, hit butadiene rubber (BR) and styrene - butadiene copolymer rubber (SBR), acrylic on blue - butadiene - styrene copolymer (ABS) and other synthetic rubber manufacturers, but also Butadiene prices plunged.

    According to the China Petroleum and synthetic rubber industry survey, Korea Kumho Petrochemical (KKPC) bear BR and dismal market conditions, ABS, etc., following the annual output of 250,000 tonnes has turned off the ABS plant after December off a further 222,000 tonnes of annual output BR plant; an annual capacity of 371,000 metric tons of SBR plant is scheduled to cut five percent in December. Others, such as reinvestment of a large oak table Lu Shenhua, Japan JSR, Japan Toray, Chi Mei Corporation and other SBR, ABS manufacturers have significantly cut response.

    When the temperature back to the market demand, manufacturers of synthetic rubber in Taiwan yesterday (26) days stressed: "We believe that the price is close to the bottom of the butadiene is expected to demand its derivatives in March next year with prices expected to rise, judged Lunar New Year after the holidays, the market warmed to the moment. "

    Petroleum Statistics, Butadiene spot prices in Asia, from July peak of $ 3,300 per metric ton to $ 3,400 per tonne recently fell to 700-750 U.S. dollars, or more than 75%. Industry forecast, due to the global economy into recession, international oil prices could fall further to around $ 40 a barrel, butadiene prices have decreased further space.

    Corporate market, said butadiene fast and deep decline, the market outlook is still bearish, BR, SBR, ABS and other butadiene derivatives related manufacturers did not enjoy the benefits of cost reduction, but due to weak downstream demand, buying shrunk, and then make BR such as synthetic rubber trading deserted, and the prices, Jin is weak, the current prices have dropped below variable cost.

    Petroleum Company Petrochemical Division director, said that if international oil prices fell below $ 40 per barrel, spot price of naphtha in Japan fell to $ 200 per tonne when the spot price of butadiene may be further down to $ 500 per metric ton , or even a $ 500 price.

Synthetic rubber manufacturers of Taiwan-related stress, in September, the rubber products sales stagnation, the current industry demand is most concerned. There is no demand, prices did not set out how to use, everything is an illusion. In particular, the recent global automotive industry into a freezing point, a serious affect automobile tires, parts needs, the industry's situation even worse.

United States, Europe, Japan car sales substantially reduced, China, India and other emerging countries, slowing demand for automobiles, such as expected growth of the message, including Japan, South Korea, Taiwan, including synthetic rubber producers in Asia have been drastically cut or even off part of the production line.