08 December 2011 04:06 [Source: ICIS news]
By Helen Yan
Offers this week for non-oil grade 1502 SBR have increased to $3,000-3,100/tonne (€2,250-2,325/tonne) CFR (cost and freight) southeast (SE) Asia for fresh January and February 2012 shipments, up by $200-300/tonne from December cargoes, they said.
Spot prices started to rally in late November after slumping 40% from early August, ICIS data showed.
“The main driver for the SBR price rebound is increasing feedstock BD costs, rather than demand. We are not optimistic about the first quarter of 2012 as there are concerns over a global slowdown next year,” said a major tyre maker based in
BD prices rose to $2,100-2,150/tonne CFR NE Asia in the week ended 2 December, up by 35% from early November, according to ICIS.
BD is a major raw material in the production of SBR, making up more than 70% of the rubber’s composition and cost. SBR is used in the production of tyres for the automotive industry.
But auto sales in
Auto sales growth in
Most major tyre makers in
“Our tyre export sales to Europe, the Middle East, Africa,
It was the first time in five months that
However, SBR producers are holding out for a price increase despite slowing demand from the downstream tyre makers.
“With the feedstock BD price rebounding so sharply and likely to increase further to $2,400-2,500/tonne CFR NE Asia, we have no choice but to raise our SBR offers or our margins will be eroded,” an SBR producer said.
($1 = €0.75)
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