19 August 2010 06:47 [Source: ICIS news]
SINGAPORE (ICIS)--The upward price momentum in the Chinese domestic styrene butadiene rubber (SBR) market has slowed this week as local traders retreated to the sidelines to wait for a clearer direction, industry sources said.
Chinese domestic SBR non-oil grade 1502 prices have stabilised at around yuan (CNY) 16,800-17,000/tonne ($2,474-2,504/tonne) ex-warehouse (EXWH) this week, after surging CNY 2,000/tonne since late July.
“The Chinese SBR domestic price increases were too fast and sharp in too short a time and this kind of momentum is not sustainable,” a Chinese SBR producer said.
However, SBR producers said that although the upward price momentum in the Chinese domestic SBR market might have lost steam, prices were unlikely to weaken as demand from the downstream tyre producers was expected to rebound soon.
“We expect demand from the tyre makers to pick up soon as they have to replenish dwindling inventories to meet fourth quarter requirements,” the Chinese SBR producer added.
($1 = CNY6.79)
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