01 March 2012 17:17 [Source: ICIS news]
HOUSTON (ICIS)--US styrene butadiene rubber (SBR) spot prices moved up on higher feedstock costs, market sources said on Thursday.
Spot prices moved up by 23 cents/lb ($507/tonne, €380/tonne) for non-oil grade 1502, and by 17 cents/lb for oil-enhanced grade 1712, market sources confirmed.
SBR 1502 spot prices are 173-183 cents/lb, while SBR 1712 prices are 152-157 cents/lb.
Buyers said they realise an increase in feedstock prices will only mean higher prices for them. Feedstocks butadiene and styrene have continued to increase since the first of the year.
Since the start of the year, non-oil grade 1502 spot prices have moved up an average of 45%, while oil enhanced grade 1702 spot prices have moved up an average of 47%.
Feedstock BD started the year with a January contract price of 105 cents/lb and moved to 118 cents/lb for February. Although the March BD contract has not settled, indications appear ripe for a settlement of 145 cents/lb.
Spot prices have moved from 115-120 cents/lb CIF (cost, insurance and freight) on 6 January to 160-165 cents/lb CIF on 24 February.
If the March settlement indications come true, contract and spot BD will have increased by 38% for contract prices since the start of the year.
Styrene has also moved up in price for contract and spot material. December contract prices for styrene were 59-63 cents/lb. The styrene contracts are typically one month behind when they settle.
January contract styrene prices are 66-70 cents/lb. Early nominations for February styrene contracts are 73-77 cents/lb.
Styrene spot prices were 61.5-62 cents/lb on 6 January and 67-68 cents/lb on 24 February.
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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