05 September 2012 23:40 [Source: ICIS news]
HOUSTON (ICIS)--US styrene butadiene rubber (SBR) spot prices dipped by 3 cents/lb ($66/tonne, €53/tonne) on falling feedstock butadiene (BD) contract prices, sources confirmed on Wednesday.
Non-oil grade 1502 spot prices fell by an average of 2.4% from 118-129 cents/lb to 115-126 cents, while oil-enhanced 1712 spot prices fell by 2.5%, moving from 114-124 cents/lb to 111-121 cents/lb as buyers and sellers agreed prices had moved down because of falling feedstock costs and weak demand.
While spot prices have moved down, sources do not expect it will generate an increase in spot sales, as demand has been weak and looks to remain weak until replacement tyres begin to see upward movement in demand.
Sources said the slowdown in replacement tyre purchases has caused some plants to cutback their production, and some may even be considering shutting down for a short period of time.
Tyre producers did not immediately return calls seeking comment.
Spot sales have been practically absent from the market for several weeks, sources said.
One producer said there is at least one selling source trying to move SBR on the market and that the spot prices associated with it will be well below the current spot price range.
North American SBR producers include American Synthetic Rubber Co (ASRC), Ashland, Firestone Polymers, Goodyear Tire & Rubber, LANXESS, Lion Copolymer and Negromex.
($1 = €0.80)
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