US SBR prices rise on BD, exports - producer

07 January 2011 01:21  [Source: ICIS news]

HOUSTON (ICIS)--January US styrene butadiene rubber (SBR) contract and spot prices were on the way up following a rise in the feedstock butadiene (BD) January settlement and export opportunities to Asia, a producer said on Thursday.

SBR formula-based contracts are likely to rise about 5 cents/lb ($110/tonne or €84/tonne) following the 5-6 cent/lb split settlement gain on the January butadiene (BD) contract, the producer said.

BD is the chief feedstock of SBR, and movement in BD prices plays the main role in SBR formula-based contract price movement.

“A 5 cent/lb spot price increase is reasonable right now, since if buyers in the US don’t want to pay it, buyers in Asia will," a reseller said. "SBR contract prices are formula-based and not subject to negotiation, since they are agreed to ahead of time,” the buyer added.

SBR spot prices for 1502 non-oil grade and 1712 oil extended grade material were also strengthening on the rise in BD prices and export opportunities to Asia, the producer said.

“The arbitrage window to China is wide open right now for anyone with supply to sell, and business has been good. Prices over there are high, too,” the producer said.

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

($1 = €0.76)

For more information on SBR, visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Gene Lockard
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