US SBR producers announce 6-cent price hikes

22 February 2008 18:26  [Source: ICIS news]

HOUSTON (ICIS news)--US styrene butadiene rubber (SBR) producers proposed increase of 6 cents/lb ($132/tonne) amid rising feedstock and energy costs, they said on Friday.

One producer proposed the increase for 1 March, while another producer proposed the increase for 15 March.

The increases, if successful, would apply to 1502 non-oil-grade and 1712 oil-extended grade product.

Spot prices for 1502 and 1712 product are in the upper 80s cents/lb and upper 70s cents/lb FOB (free on board), respectively, according to global chemical market intelligence service ICIS pricing.

The producers said the rising costs for butadiene (BD) and styrene and near record-high crude oil prices have eroded margins, making the increase necessary.

The producers also noted that they were under BD sales allocations through the end of March, and they did not have enough of the feedstock to run at normal levels.

A buyer said that while SBR price hike proposals were expected, the proposed increase was larger than anticipated and would be met with buyer resistance.

Continental Tire North America, Cooper Tire and Rubber, Goodyear Tire and Rubber, Kumho Tire USA and Michelin North America all announced price increases of 5-7% in passenger car tyres for the coming weeks.

Major US SBR producers include International Specialty Products (ISP) and Lion Copolymer. Major buyers include Continental, Firestone, Cooper, Goodyear, Michelin and Carlisle.

For more on SBR visit ICIS chemical intelligence

By: Gene Lockard
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