20 June 2012 06:52 [Source: ICIS news]
By Helen Yan
The slump in demand in Europe amid a deepening euro-zone debt crisis has prompted the European SBR suppliers to channel their surplus stocks to
“We will increase our SBR offers for July, but we are facing stiff competition from the European suppliers and this makes it difficult for SBR prices in
Deep-sea cargoes from Europe including
Spot offers of East European and Russian SBR non-oil grade 1502 are available at $2,450-2,500/tonne (€1,936-1,975/tonne) CFR (cost and freight) northeast (NE) Asia, which are about $100/tonne lower than Asia-origin SBR, traders said.
“We can get offers of East European non-oil grade 1502 SBR at below $2,500/tonne CFR NE Asia,” a Chinese trader said.
However, some Asian SBR producers expect prices to stabilise and firm in the near term as demand has picked up.
“We are receiving more enquiries as the downstream tyre makers are coming back to the market to re-stock their dwindling inventories. They are asking for more volumes to cover their third quarter requirements,” another northeast Asian SBR producer said.
However, the price rebound will only be a modest one, given that the global market outlook is still uncertain.
Sentiment is still weak and buyers are cautious amid the escalating eurozone debt crisis, a fragile
“We do not expect a sharp price rebound but we expect prices to stabilize and firm in the near term in line with the feedstock butadiene (BD) prices, “a Chinese SBR producer said.
SBR prices have been declining in recent months because of poor demand and falling feedstock BD prices.
In the week ended 13 June, non-oil grade 1502 SBR prices were at $2,600-2,700/tonne CIF (cost, freight and insurance)
The feedstock BD prices were at $1,800-1,900/tonne CFR (cost and freight) northeast (NE)
The feedstock BD makes up about 70% of the composition and production costs of SBR.
($1 = €0.79)
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