US SBR hikes seen to follow feedstock climb

09 April 2008 23:23  [Source: ICIS news]

HOUSTON (ICIS news)--US styrene butadiene rubber (SBR) producers expect little price relief for buyers in the second quarter of 2008 if feedstock butadiene (BD) prices run up as expected in May, a producer said on Wednesday.

A probable BD increase of 5-7 cents/lb was heard by the producer, while an increase of 8-10 cents/lb was heard discussed by an analyst.

“An immediate SBR price reaction would follow a BD price increase of that size,” the producer said of the rumoured increases, adding that SBR spot and contract prices would be affected.

BD was on sales controls through at least the end of April due to tight supply, resulting in sales allocations for SBR that were expected to last at least through May, the producer said.

SBR spot prices for 1502 non-oil grade were currently 105-106 cents/lb FOB (free on board) US Gulf (USG), while 1712 oil extended grade prices were 96-97 cents/lb FOB USG, according to global chemical market intelligence service ICIS pricing.

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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