08 February 2012 23:33 [Source: ICIS news]
Correction: In the ICIS news story headlined "US Feb SBR contracts rise by 9, 13 cents/lb on feedstock costs" dated 8 February 2012, please read in the second paragraph …for non-oil grade 1502 to reach 136–143 cents/lb… instead of …to reach 136–146 cents/lb…. A corrected story follows.
HOUSTON (ICIS)--US February styrene butadiene rubber (SBR) contract prices have increased because of rising feedstock costs, sources said on Wednesday.
Prices rose on average by 13 cents/lb ($287/tonne, €215/tonne) for non-oil grade 1502 to reach 136–143 cents/lb, and by 9 cents/lb for oil-enhanced grade 1712 to reach 113–125 cents/lb.
The contract prices are based on January contract prices for styrene, February prices for butadiene (BD) and other factors.
February BD contract prices rose to $1.18/lb and $1.30/lb in a split settlement.
January styrene contract prices have shown early settlement indications of rising by 7.5 cents/lb over the December contract prices.
Buyers said it was a matter of time before the increased BD costs and the latest styrene proposals affected SBR pricing.
Producers said they continue to see demand building, which may be attributed in part to an attempt to buy material ahead of price hikes.
There is also an expected increase in demand from the automobile segment, which looks to grow in the number of units sold in 2012 over 2011.
A producer said that one simply has to look at what has taken place in the Asia-Pacific region to understand what is taking place in the US.
SBR prices in Asia have soared and are set to increase further on escalating feedstock costs.
Producers said they are trying to stay ahead of the curve, since they cannot afford to let prices go flat and then be forced to initiate abrupt price changes to offset rising feedstock costs.
US SBR producers include American Synthetic Rubber, Ashland, Firestone Polymers, Goodyear Tire & Rubber, LANXESS and Lion Copolymer.
($1 = €0.75)
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