02 December 2010 22:27 [Source: ICIS news]
HOUSTON (ICIS)--December US styrene butadiene rubber (SBR) spot prices could climb as much as 3-5 cents/lb ($66-110/tonne, €50-84/tonne) because of increasing production costs and export opportunities to China, a producer and a trader said on Thursday.
Buyers were not immediately available for comment. However, it was expected that there would be some buyer resistance in the US because domestic demand was considered light to moderate.
Production costs were driven up by continued strength in natural rubber prices and by a rise in chief feedstock butadiene (BD), which climbed 2 cents/lb in December to settle at 86 cents/lb.
“Right now, prices in China are about $1.30/lb, so unless we can push spot numbers up in the US, it doesn’t make sense not look at export markets,” the producer said.
ICIS-assessed non-oil grade 1502 SBR spot prices averaged just over $1.29 cents/lb CIF (cost, insurance and freight) China, while in the US, spot prices for 1502 material at the end of November were 107.00-113.00 cents/lb FOB (free on board) US Gulf (USG).
North American SBR suppliers include include Goodyear, International Specialty Products (ISP), Lion Copolymer and Negromex.
($1 = €0.76)
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