18 April 2012 16:55 [Source: ICIS news]
LONDON (ICIS)--The chief executive of Italy-headquartered manufacturer Pirelli Tyre on Wednesday listed butadiene (BD) as one of the main challenges the tyre industry is facing in a likely reference to growing pressure on profitability derived from the rising cost of raw materials.
“The key problem for the tyre industry is of course the issue about butadiene,” said Francesco Gori, chief executive of Pirelli Tyre.
Gori was the keynote speaker at the annual International Institute of Synthetic Rubber Producers (IISRP) conference, which is being held this week in ?xml:namespace>
The “issue” he alluded to during his speech is a likely reference to the sharp increase in the price of BD, which is one of the main feedstocks of styrene butadiene rubber (SBR), a product companies like Pirelli mix with natural rubber to make tyres.
BD prices have risen steadily in recent years, lifted by limited supply in the
BD is extracted from crude C4, which is produced mainly through the naphtha-cracking process.
US BD contract prices have soared by 55% in 2012 from December last year, while spot prices in
The surge in recent months came as global BD supply has tightened amid a busy cracker maintenance season in the
The 53rd edition of the IISRP meeting opened on Monday. The conference ends on Thursday.
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