China SBR down CNY500-600/tonne; may extend falls on weak demand

21 May 2012 09:07  [Source: ICIS news]

SINGAPORE (ICIS)--Styrene butadiene rubber (SBR) prices in China have shed yuan (CNY) 500-600/tonne ($79-95/tonne) last week and may continue to fall because of weak demand and falling feedstock costs, market sources said on Monday.

Non-oil SBR 1502 was assessed at CNY19,000-20,000/tonne EXWH (ex-warehouse) East China, while oil-extended SBR 1712 was at CNY15,900-16,000/tonne EXWH East China on 18 May, according to Chemease, an ICIS service in China.

Buyers have retreated to the sidelines, awaiting further decline in prices, before replenishing their stocks, market sources said.

Major SBR producers are expected to cut their offers to entice buyers.

On 14 May, China’s Sinopec had reduced its offers by around CNY700/tonne offer price for non-oil grade SBR 1502 to CNY19,000-20,000/tonne, and for oil-extended SBR to CNY15,800 but these had failed to attract buyers, markets sources said.

Meanwhile, falling feedstock prices are also exerting a downward pressure on SBR values.

Feedstock butadiene (BD) prices were at CNY17,700-18,000/tonne DEL (delivered) East China on 18 May, down by CNY1,100-1,200/tonne week on week, according to Chemease.

Prices of another feedstock, styrene monomer (SM), also fell last week, in line with falling crude prices.

On 18 May, SM prices were assessed at CNY10,500/tonne (ex-tank Zhangjiagang, about CNY500-520/tonne lower compared with the previous week’s level, Chemease data showed.

($1 = CNY6.33)

By: Sunny Pan

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