Replacement tyre market leaves US SBR producers flat

11 June 2009 15:19  [Source: ICIS news]

HOUSTON (ICIS news)--Replacement tyres have failed to fill the void in the US styrene butadiene rubber (SBR) market left by the flagging original equipment manufacturer (OEM) sector,  a producer said on Thursday.

“We knew there would be no OEM market, but we thought we’d see a substantial increase in replacement tyres from people driving their older vehicles longer," the producer said. "However, that hasn’t been the case."

OEM tyres for new vehicles and replacement tyres are the two main demand drivers for SBR, the producer said. The drop in OEM tyre demand due to plummeting new vehicle sales has not produced a corresponding increase in replacement tyres, the producer added.

US SBR 1502 non-oil grade spot prices are 56-61 cents/lb ($1,235-1,345/tonne, €889-968/tonne), while 1712 oil extended grade prices are 53-58 cents/lb, according to global chemical market intelligence service ICIS pricing.

SBR producers include Goodyear, International Specialty Products (ISP), Lion Copolymer and Negromex.

($1 = €0.72)

For more on SBR visit ICIS chemical intelligence
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By: Gene Lockard
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