US SBR producers eye summer demand slump, BD settlement

21 July 2010 22:49  [Source: ICIS news]

HOUSTON (ICIS news)--US styrene-butadiene rubber (SBR) producers were hoping for a rollover of chief feedstock butadiene (BD) in August amid a possible dip in summer SBR demand, a producer said on Wednesday.

“The summer months are generally a slow period for SBR, as automakers quit making vehicles for the current year and begin to change over to next year’s models,” the producer said. “If demand slows, no one will want to raise prices.”

The original equipment manufacturer (OEM) tyre market for new vehicles is a major demand driver of the SBR sector.

However, if BD prices increase and SBR producers hold the line to keep from chasing off demand, SBR producer margins would be squeezed, the producer added.

Domestic SBR contract prices for July were assessed by ICIS at 114-122 cents/lb ($2,513-2,690/tonne, €1,960-2,098/tonne) for 1502 non-oil grade material, and 104-112 cents/lb for 1712 oil-extended grade material.

BD nominations were expected by the end of next week, SBR sources said.

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

($1 = €0.78)

For more on SBR and BD visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect


By: Gene Lockard
1 713 525 2653



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