N America June SBR contracts fall 17% on BD, spot prices mixed

13 June 2012 22:27  [Source: ICIS news]

HOUSTON (ICIS)--June contract prices for North American styrene butadiene rubber (SBR) fell by an average of 28 cents/lb ($617/tonne, €494/tonne), following a drop of up to 27% in feedstock butadiene (BD), market sources confirmed on Wednesday.

The declne brought the price to 131-137 cents/lb FOB (free on board) US Gulf (USG) for non-oil grade 1502.

The May contract price range for 1502 was 158-166 cents/lb.

Oil-extended grade 1712 contract prices for June moved to 110-118 cents/lb from the May contract price range of 139-141 cents/lb.

Decreased demand and lower feedstock costs, primarily the drop in BD contract prices, sent spot prices wider from last week's price range for non-oil grade 1502. Spot prices for oil-extended 1712 were flat with last week.

This year's contract price for BD have fallen from an average of 153.50 cents/lb in April to 107 cents/lb in June.

In 2012, spot prices for BD have moved from an average of 117.50 cents/lb in January to a high of 162.5 cents/lb in February and March. Last week, they were flat from the week before at 82.50 cents/lb.

Styrene, which makes up less than 25% of SBR, have had contract prices start the year at an average of 61 cents/lb and climbing to an average of 73 cents/lb in March before moving to an average of 72 cents/lb in April and holding flat for May.

Demand for domestically produced SBR for use in replacement tyres has waned a little, while tyres for new cars and light trucks has increased a little. However, replacement tyres typically account for about 70% of tyres manufactured in a year.

SBR producers in North America include American Synthetic Rubber Co (ASRC), Ashland, Firestone Polymers, Goodyear Tire & Rubber, LANXESS, Lion Copolymer and Negromex

($1 = €0.80)

By: Wesley Busch
+1 713 525 2653

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