27 August 2010 19:11 [Source: ICIS news]
HOUSTON (ICIS)--The price spread could decline between US and Chinese styrene butadiene rubber (SBR) if demand in China continues increasing in the fourth quarter, a US reseller said on Friday.
During the third quarter, US producers were unable to pass through higher feedstock costs due to lower-priced SBR exports from Asia.
However, SBR demand in China is rising, which could boost Asian SBR prices in the fourth quarter.
“Anything that will help reduce the spread between domestic and imported SBR will help. It just depends on whether SBR from other Asian countries, like Korea, continues to flow into the US,” the reseller said.
US August non-oil grade 1502 spot prices were 113-121 cents/lb ($2,491-2,668/tonne or €1,968-2,108/tonne) FOB (free on board) US Gulf (USG), as assessed by ICIS.
In Asia, spot prices for 1502 this week increased $50/tonne to the low to mid 90s cents/lb CIF (cost, insurance & freight) China.
North American SBR producers include Goodyear, International Specialty Products (ISP), Lion Copolymer and Negromex.
($1 = €0.79)For more on SBR visit ICIS chemical intelligence
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