09 May 2012 07:10 [Source: ICIS news]
By Helen Yan
BST Elastomers (BSTE) has announced a force majeure on BR supply, as its 55,000/tonne facility in Map Ta Phut,
“There is no significant impact at the moment on the market and we will wait and see,” a northeast Asian BR producer said.
BR prices may even continue to fall because of weak demand, market sources said.
In the week ended 2 May, spot BR prices were assessed at $3,500-3,550/tonne CFR (cost and freight) southeast (SE)
“BSTE’s BR capacity is small, so the shutdown will not have a great impact on the supply situation,” a northeast Asian BR producer said.
BR is used as raw material for the production of tyres for the automotive industry.
Demand for the synthetic rubber is not expected to pick up anytime soon, with growth in vehicle sales significantly moderating globally.
Downstream tyre producers are pressing for lower BR prices given a bearish global market outlook.
Buying indications for fresh BR shipments have dropped to $3,200-3,300/tonne CFR SE Asia, market sources said.
A number of downstream tyre makers have cut back production and are not very keen to secure additional spot BR, having covered their requirements till the end of June, industry sources said.
($1 = €0.77)
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