31 May 2011 07:20 [Source: ICIS news]
By Helen Yan
Regional producers hiked their June offers for non-oil grade 1502 SBR by $100-200/tonne (€70-140/tonne) from May to $4,300-4,400/tonne CFR (cost and freight) India and SE (southeast) Asia, taking advantage of an open arbitrage window to the US, market sources said.
US’ major producers Goodyear and ISP Elastomers shut down or cut SBR production because of limited availability of feedstock butadiene (BD), prompting some tyre makers in the US to seek spot cargoes from Asia.
“We have received enquiries from major tyre producers in the
“We have stopped offering any SBR product to
The key Chinese market has been lagging behind other markets in Asia, with spot prices of non-oil grade 1502 SBR at least $100/tonne lower than SE (southeast) Asia and
In the week ending 25 May, spot prices of non-oil grade 1502 SBR were at $4,000-4,100/tonne CIF (cost, freight and insurance)
Regional tyre producers were initially expecting SBR prices in Asia to plateau and possibly weaken in June, on expectations that prices of feedstock BD will start to trend down after breaching $3,400/tonne
But BD values continued to spike, surging to $3,650-3,670/tonne CFR NE Asia in the week ended 27 May, according to ICIS.
BD is a major feedstock used to make SBR.
Another factor bolstering SBR prices is the upswing in natural rubber (NR) prices.
Contrary to market expectations, NR prices rose to $4,650/tonne on Monday after plunging by $700/tonne since early April to around $4,500/tonne in early this month.
NR and SBR substitute each other as a raw material in the production of tyres for the automotive industry.
“We will hold back our SBR purchases and not commit in the near term as we expect this to be a temporary situation and that SBR prices will fall later in June,” said a downstream tyre producer.
($1 = €0.70)
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