04 April 2012 06:52 [Source: ICIS news]
By Helen Yan
April BR offers fell to $3,750-3,850/tonne (€2,850-2,888/tonne) CFR (cost & freight)
Feedstock BD prices were at $3,500-3,550/tonne CFR NE (northeast) Asia in the week ended 30 March, down by $500/tonne from early February when prices peaked at $4,000/tonne CFR NE Asia, according to ICIS.
The demand for BR in Asia has been weak because major Asian economies such as
The Chinese government has revised its GDP growth target for 2012 to 7.5%, down from the 8% target that was kept for the previous seven years, while
The demand for BR has also been weakened as
BR is used in the manufacture of tyres for the automotive industry and Europe is a major export market for tyre makers in
“We expect [tyre demand in] the second quarter to be flat or soft. Overall, Indian tyre exports to
Low tyre export volumes to Europe have weakened market sentiment and prompted the downstream tyre makers in
Adding to the woes of the Asian BR producers is competition from European BR suppliers who have diverted their surplus stocks to
“The European suppliers have been making inroads into the Asian market and Asian producers have no choice but to reduce their prices to match the lower offers of the European suppliers,” a trader said.
“We get BR offers at $3,600/tonne CFR India or even lower from the European suppliers and the Asian BR producers have to match these offers and reduce their prices if they wish to close any deals,” a downstream tyre maker in
Asian BR producers include Korea Kumho Petrochemical (KKPC), South
European BR producers include German-based
($1 = €0.76)
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