22 February 2012 19:25 [Source: ICIS news]
HOUSTON (ICIS)--March contract prices for US styrene butadiene rubber (SBR) could rise sharply if upstream producers successfully push through hikes for butadiene (BD) and styrene, a producer said on Wednesday.
Based on a formula used to calculate SBR contract prices, the increase in March could come to 20 cents/lb ($441/tonne, €331/tonne).
The February contract prices for SBR non-oil grade 1502 are 136-143 cents/lb, while oil-extended 1712 prices are 113-125 cents/lb. The 20 cent/lb increase would put those prices at 156-163 cents/lb for 1502 and 133-145 cents/lb for 1712, average increases of 14% and 17%, respectively.
Market sources say the initial BD nomination for the March contract may come in at 25 cents/lb higher than the February contract price. Styrene producers floated the possibility of a 7 cent/lb increase for the February contract prices while announcing the January contract prices.
BD contract prices, if the early nomination holds true, will have increased by 46% since the December contract. Styrene contract prices, if the early indications become reality, will have increased by 23%, also since the December contract.
Buyers did not immediately respond to requests for comment.
SBR producers in North America include American Synthetic Rubber, Ashland, Firestone Polymers, Goodyear Tire & Rubber, LANXESS, Lion Copolymer and Negromex.
($1 = €0.75)
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