03 August 2009 05:22 [Source: ICIS news]
By Helen Yan
SINGAPORE (ICIS news)--Soaring feedstock butadiene (BD) and rising styrene butadiene rubber (SBR) prices may hamper the recovery of the Chinese tyre industry, which is facing growing protectionism from the US, a Chinese SBR producer said on Monday.
The feedstock BD price jumped by yuan (CNY) 700-800/tonne ($102-117/tonne) to CNY10,000-10,200/tonne ex-tank this week in the face of tightened supply from the unexpected two-month delay in the start-up of
The new 120,000 tonne/year BD unit was initially due to commence commercial production in July, but has since been delayed to September.
This has prompted major Chinese SBR producers, such as Sinopec and PetroChina, to raise non-oil grade 1502 SBR offers by CNY 300/tonne to CNY 12,900-13,200/tonne ex-warehouse (EXWH) from 1 August.
“We expect the domestic non-oil grade 1502 SBR prices to rise further to CNY 14,000/tonne as we expect the BD price to go up further,” a Chinese trader said.
The feedstock BD domestic price in
SBR is the feedstock used in the manufacture of tyres.
The US International Trade Commission (ITC) ruled in favour of the United Steelworkers’ (USW) appeal to limit Chinese tyre imports into the
The commission had recommended that a three-year duty be imposed on Chinese tyre imports. In particular, the commission proposed a 55% duty on the first year, 45% on the second and 35% on the third.
The USW had filed a petition on 20 April 2009 that sought a three-year import quota on Chinese tyres, saying that Chinese tyre imports rose from fewer than 15 million units in 2004 to over 46 million tyres in 2008.
($1 = €0.70/$1=CNY6.84)
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