26 October 2011 21:18 [Source: ICIS news]
HOUSTON (ICIS)--Spot prices for US styrene butadiene rubber (SBR) were assessed down 15 cents/lb ($331/tonne, €238/tonne) on Wednesday because of a weakening demand, abundant inventory and global market pressure.
Current spot prices are assessed at 165-180 cents/lb for non-oil grade 1502 and at 150-160 cents/lb for oil extended grade 1712.
According to some Asian buyers, European producers have exported SBR to Asia at liquidation pricing that has been very competitive in recent weeks.
An American market participant agreed that it is possible that European producers are selling to Asian buyers because, he said, producers are looking to sell material.
European market participants, however, doubt this to be true because of the time it takes to get from Europe to Asia. During that time prices could go in either direction.
Many buyers, one source said, were not willing to buy right now because they expect prices for the key feedstock, butadiene (BD), will continue to fall. Therefore, they expect the price of SBR will fall accordingly.
Major SBR manufacturers in the USA include American Synthetic Rubber, Ashland, Firestone Polymers, Goodyear, LANXESS and Lion Copolymer.
($1 = €0.72)
For more on SBR visit ICIS chemical intelligence
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