06 September 2012 08:13 [Source: ICIS news]
By Helen Yan
On 5 September, SBR non-oil grade 1502 SBR spot prices were assessed at $2,350-2,400/tonne (€1,857-1,896/tonne) CIF (cost, freight and insurance)
Prices have fallen by 12% from a month ago, and have been on a downtrend since late February, ICIS data showed.
“Demand is very poor and orders for SBR have dropped significantly as the downstream tyre makers are adopting a wait-and-see stance given the weak global market,” a Chinese SBR producer said.
Most tyre producers have been keeping lean inventories and are buying SBR on a “hand-to-mouth” basis because of weak global demand and market uncertainty.
With Europe deep in a sovereign debt crisis and the
SBR supply in
The Chinese domestic market is very weak, and with new SBR supply expected to come on stream soon, product prices will be under further downward pressure, a Chinese producer said.
Among the plants that will start up soon is a 200,000 tonne/year unit of Fushun Petrochemical. Its start-up is set in the first half of September.
In late September, YPC-GRO (
Some SBR producers are optimistic that product prices are nearing bottom and should rebound soon.
“Market sentiment is weak but we expect the downstream tyre makers to return to the market in the second half of September to restock their inventories,” a South Korean SBR producer said.
($1 = €0.79)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections