19 March 2012 06:03 [Source: ICIS news]
By Sunny Pan
SINGAPORE (ICIS)--China’s styrene butadiene rubber (SBR) prices may soon stop falling on the back of improving demand and amid a rebound in spot values of feedstock butadiene (BD), market sources said on Monday.
Domestic spot SBR prices in ?xml:namespace>
Prices were assessed at CNY23,700-24,200/tonne ($3,750-3,829/tonne) for non-oil grade SBR 1502, and at CNY20,300-20,500/tonne for oil-extended grade SBR 1712 on 16 March, according to Chemease, an ICIS service in
Hoping to stimulate buying interest, major domestic SBR supplier Sinopec had cut its SBR offer on 15 March by CNY800/tonne to CNY24,000/tonne for non-oil grade SBR 1502 and to CNY20,200/tonne for oil-extended grade SBR 1712, market sources said.
SBR demand should improve as tyre production - the major downstream for the material - is expected to increase towards April.
Among domestic producers in
Chinese tyre makers are currently running their facilities at an average run rate of 70-80%, up from around 70% in the month of February, industry sources said.
Rebounding BD prices would provide firm support to SBR prices, they said.
BD is quoted at around CNY26,000-26,500/tonne on Monday, up by CNY1,000/tonne from last week, with most market players expecting supply to tighten once downstream synthetic rubber plants ramp up production, market sources said.
Among those that raised production is Gaoqiao Petrochemical, which raised operating rates at its 120,000 tonne/year butadiene rubber (BR) plant to 100% on 9 March from 50% previously.
Spot domestic BD prices in
Most market players in
Liaoning Huajin Chemical and Bluestar (
With BD prices currently at CNY26,000/tonne, SBR must at least be priced at CNY25,300/tonne, industry sources said.
Styrene monomer (SM), another major raw material for SBR production, was assessed at CNY10,580-10,700/tonne ex-tank
($1 = CNY6.32)
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