21 April 2011 05:13 [Source: ICIS news]
By Helen Yan
SINGAPORE (ICIS)--Indian styrene butadiene rubber (SBR) prices surged past $4,000/tonne (€2,760/tonne) this week and look set to remain firm in May as supply is tighter than expected, industry sources said on Thursday.
Spot prices for non-oil grade 1502 spiked $200/tonne week on week to $4,000-4,100/tonne CFR (cost & freight) ?xml:namespace>
“SBR prices have risen above $4,000/tonne and are likely to remain firm in the second quarter because of tight supply,” said an India-based tyre producer.
Heavy turnaround schedule at regional plants this quarter constrains SBR availability, which is aggravated by supply disruption in
TSRC Corp in Taiwan; Zeon Corp in Japan; and Bridgestone Huizhou Synthetic Rubber, Lanzhou Petrochemical and Gaoqiao Petrochemical in China have scheduled maintenance at their SBR plants in April and May.
“The tyre producers are building up inventories as they fear that prices may still rise, given tight SBR supply,” a northeast Asian SBR producer said.
The resulting shortfall in domestic SBR supply in
“We have received enquiries from some tyre producers in
To meet the shortfall in the Japanese market, Korean SBR producers have reduced their volume offers to
Dwindling SBR supply from
SBR is a raw material used in the manufacture of tyres for the automotive industry.
“The SBR market is turning more bullish as there is no spot cargo from Europe because of the tight butadiene supply in
Butadiene (BD) is the feedstock for SBR. BD supply in
($1 = €0.69)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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