US SBR spot prices rocket up 14% on higher BD values – producer

12 April 2011 19:12  [Source: ICIS news]

HOUSTON (ICIS)--US spot styrene butadiene rubber (SBR) prices are up by as much as 14% from week-earlier values as a result of tight and expensive butadiene (BD) supply, an SBR producer said on Tuesday.

The increases sent 1502 non-oil grade material up to 185–200 cents/lb ($4,079–4,409/tonne, €2,815–3,042/tonne), compared with the week-earlier range of 167–175 cents/lb, as assessed by ICIS.

Values for 1712 oil extended grade material ran up to 163–173 cents/lb from 155–167 cents/lb a week earlier.

“These are real prices, and I have already sold some 1502 in that range to a buyer who was just happy to get it,” the producer said.

The increases were greater for 1502-grade material because it was in greater demand, the producer said.

A lack of crude C4 was keeping a support floor under BD values, which rose to 165–175 cents/lb from around 100–110 cents/lb only about six weeks earlier.

With BD prices expected to continue going up, SBR producers are unlikely to see much relief in the coming weeks.

“Buyers may as well get used to it, because we just don’t have enough to meet demand,” a BD supplier said about the rise in prices.

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

($1 = €0.69)

By: Gene Lockard
1 713 525 2653

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