China Aug SBR shipments price rebounds on strong domestic market

11 August 2010 05:06  [Source: ICIS news]

SINGAPORE (ICIS)--Styrene butadiene rubber (SBR) prices started to move up in China this week after trending down since May, lifted by a sharp spike in domestic SBR values, industry sources said on Wednesday.

August shipments of SBR non-oil grade 1502 have been fixed at $2,000/tonne (€1,520/tonne) CIF (cost, freight and insurance) China, up from deals at $1,900-1,950/tonne CIF China in July, they said.

SBR prices have been falling since May, when non-oil grade 1502 prices hit $2,300/tonne CIF China, according to ICIS data.

Meanwhile, domestic prices of SBR non-oil grade 1502 in China have spiked yuan (CNY) 2,000/tonne ($295/tonne) since early July to above CNY17,000/tonne ex-warehouse this week.

But market players doubted the sustainability of the price rebound, given lacklustre demand from downstream tyre producers.

“The sharp rebound in the domestic market is due mainly to trader-driven activities as demand from the downstream tyre producers remains low,” said a Chinese SBR producer.

“Several downstream tyre producers in China are currently operating at reduced rates during the hot summer season,” he added.

($1 = €0.76 /$1 = CNY6.77)

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By: Helen Yan
+65 6780 4359

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