07 June 2012 09:48 [Source: ICIS news]
LONDON (ICIS)--European styrene butadiene rubber (SBR) June contracts have not yet fully settled but there are indications that prices are following the drop in the June butadiene (BD) monthly contract, sources said late on Wednesday.
“Demand is weak, and we will decrease our prices by €300/tonne [$375/tonne],” said a major producer.
A couple of buyers confirmed that they had settled June at a €300/tonne decrease, with one saying he had bought 1500 grade at around €2,400/tonne FD (free delivered) NWE (northwest Europe). The buyer added that it had begun to hear bigger discounts available for June, but this was not confirmed.
“There is no point offering even lower prices,” said the producer. “It won’t lead to more buying.”
Demand in the tyre sector is weak, but one large converter in the industrial sector said its volumes were holding up quite well.
Sources are looking towards an upturn in Asia demand to boost the SBR market as European demand is expected to remain lacklustre for some time.
June BD settled at €1,850/tonne FD NWE, down by €400/tonne, and spot BD pricing is still decreasing. Some sources already expect a further fall in BD pricing in July and they expect this to be transferred to SBR.
($1 = €0.80)
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