09 November 2011 23:13 [Source: ICIS news]
HOUSTON (ICIS)--September US contract prices for non-oil grade 1502 and oil-enhanced grade 1712 styrene butadiene rubber (SBR) were both assessed down by 5 cents/lb ($110/tonne, €79/tonne) on Wednesday because of reduced feedstock costs of butadiene and styrene, as well as decreased demand and economic factors.
Non-oil grade 1502 was assessed by ICIS at 178-185 cents/lb, while oil-enhanced grade 1712 was assessed at 156-164 cents/lb.
The sharp drops in feedstock costs have caused a lag in SBR contract negotiations.
The US butadiene (BD) contract price for September was 170 cents/lb, down by 3.3% from August. Meanwhile BD spot prices were an average of 143.5 cents/lb.
The September contract price for US styrene was 68-73 cents/lb. Styrene spot prices averaged 62.5 cents/lb in September.
It is anticipated that the October and November SBR contract prices will drop sharply, based on feedstock costs, demand and competitive global activity.
Feedstock BD contracts for November fell on average by 18% to $1.15/lb in the first single settlement in eight months for the US contract. The drop for US BD in November is the third in as many months.
BD in October was split with most contracts agreed at $1.40/lb, down by 30 cents/lb from September.
Some of the major US SBR producers include American Synthetic Rubber, Ashland, Firestone, Goodyear, Lanxess and Lion Copolymer.
($1 = €0.72)
For more on SBR visit ICIS chemicals Intelligence
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