China domestic BR softens as tight supply eases

25 November 2010 03:15  [Source: ICIS news]

SINGAPORE (ICIS)--Chinese domestic butadiene rubber (BR) prices softened by yuan (CNY) 200/tonne ($30/tonne) this week, tracking declines in natural rubber values, amid easing of supply tightness, industry sources said on Thursday.

BR prices are currently at CNY28,900-29,300/tonne ex-warehouse (EXWH),  they said.

“Chinese buyers are taking a cautious stance and adopting a wait-and-see stance, given the fluctuations in natural rubber futures and eas[ing] BR supply,” a Chinese trader said.

Tight supply drove up BR prices up by more than CNY3,000/tonne from mid-October, when prices were hovering at around CNY25,000-26,000/tonne EXWH, according to ICIS data.

The restart of a 120,000 tonne/year BR plant in Shanghai owned by of Gaoqiao Petrochemical on 11 November helped ease supply in the domestic Chinese market. The plant had a 25-day maintenance shutdown.

Meanwhile, natural rubber futures had fallen by more than CNY 1,500/tonne since last week to around CNY31,300/tonne at the Shanghai Futures Exchange.

BR and natural rubber are used as raw materials in tyre production.

($1 = CNY6.66)

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By: Helen Yan
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