Kumho Petrochemical will continue to operate its two butadiene plants in South Korea at reduced rates of 50% for the time being, due to an ongoing lack of crude C4 feedstock, a company source said Wednesday.
The company has a 150,000 mt/year butadiene plant in Yeosu and a 90,000 mt/year butadiene unit in Ulsan.
The two units have been operating at 50% of capacity since March, from 100% previously, due to a feedstock shortage, Platts reported previously.
South Korea's crude C4 supplies are tight as domestic steam cracker operators have been using lighter feedstock like LPG recently rather than naphtha.
"LPG cracking [versus naphtha] reduces butadiene production in South Korea by 5-10%," an industry source estimated.
Due to lower butadiene output, Kumho has also been operating its synthetic rubber plants in South Korea at reduced rates since March.
The company is running its 327,000 mt/year butadiene rubber plant in Yeosu at 49% of capacity, and its 481,000 mt/year styrene-butadiene-rubber plant in Ulsan at around 85% of capacity, the company source said.
