US SBR producers would benefit from BD price drop in September

30 August 2010 23:15  [Source: ICIS news]

HOUSTON (ICIS)--US styrene-butadiene rubber (SBR) producers will have an easier time competing with imports if the feedstock butadiene (BD) September settlement moves down 2 cents/lb as expected, a producer said on Monday.

Lower-cost imports from Asia had been the primary cost driver for SBR producers in recent weeks, the producer said.

To be competitive, US producers had to trim their prices as much as possible, even when feedstock BD costs were flat or settled up. That meant domestic producers had to settle for narrowing margins.

“A 2-cent drop in the feedstock price will be welcome relief for SBR producers, since they’ll be able to drop prices without trimming margins as much,” the producer said.

“However, they were already easing prices down, so it won’t make them do anything they weren’t already doing,” the producer added. “They’ll just have an easier time doing it.”

US Gulf (USG) 1502 non-oil grade SBR spot prices in late August were 113-120 cents/lb FOB (free on board), as assessed by ICIS.

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

($1 = €0.78)

For more on SBR 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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