19 October 2012 05:52 [Source: ICIS news]
By Helen Yan
The market is also being weighed down by falling values of feedstock butadiene (BD), they said.
On 18 October, BR prices fell by $50/tonne (€39/tonne) week on week to $2,650-2,750/tonne CFR (cost and freight) northeast (NE)
Feedstock BD prices have also been under downward pressure in October. In the week ended 12 October, BD prices were assessed at an average of $1,900/tonne CFR NE Asia, down by about $100/tonne from mid-September, ICIS data showed.
“We do not expect the [BR] market to improve, given the weak sentiment and poor economic data [in
Growth in the world’s second biggest economy has continued to decelerate since the start of the year, after a 7.6% growth in the second quarter and an 8.1% expansion in the first, official data showed.
“It looks like the BR market will most probably be flat in the fourth quarter as demand has been slower-than-expected in the region,” another Asian BR producer said.
The World Bank has warned of slower economic expansion in
The country’s territorial spat with
BR is used in the production of tyres for the automotive industry.
Chinese buyers have shunned buying Japan-branded vehicles because of the dispute, leading to a plunge in sales of Japanese cars.
A number of Chinese BR producers have either shut or cut output in view of the poor market conditions.
Dushanzi Petrochemical’s 30,000 tonne/year BR plant at
The Society of Indian Automobile Manufacturers has tempered its growth expectations for car sales in the current financial year ending March 2013 to 1%-3% from its previous estimate of 9%-10%.
“The market is really dull and has been very frustrating as sales of BR have been very slow,” a trader said.
($1 = €0.77)
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