US SBR prices may rise in Feb on higher BD costs - seller

20 January 2010 21:36  [Source: ICIS news]

HOUSTON (ICIS news)--US styrene butadiene rubber (SBR) producers will likely propose increases for February amid an expected rise in production costs, sources said on Wednesday.

An initial proposed increase of 7 cents/lb ($154/tonne or €108/tonne) was heard for the February butadiene (BD) contract. That will likely lead to an eventual settlement increase of 5 cents/lb, a seller said.

A February BD increase of that size would lead to a rise in SBR prices, a consultant for a producer said, adding that improved SBR market conditions would help producers push through a February price increase.

“Buyers know what’s going on, and when feedstock price increases drive up production costs, buyers will usually go along,” the consultant said.

Buyers were not immediately available for comment. In 2009, buyers generally accepted all, or nearly all, of producers’ proposed price increases.

US Gulf January contract prices for 1502 non-oil grade and 1712 oil extended grade SBR are 87-89 cents/lb and 79-82 cents/lb, respectively, according to global chemical market intelligence service ICIS pricing.

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

($1 = €0.70)

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