05 December 2012 21:58 [Source: ICIS news]
HOUSTON (ICIS)--US styrene butadiene rubber (SBR) November contract prices rolled over, reflecting the flat movement in November butadiene (BD) and nominal movement in October styrene contract prices, sources confirmed on Wednesday.
The November contract price for non-oil grade 1502 SBR is 112-122 cents/lb ($2,469-$2,690/tonne, €1,877-2,044/tonne).
The oil-extended grade 1712 SBR contract price is 95-105 cents/lb.
SBR contract prices are determined one month after the calendar.
Meanwhile, spot SBR prices moved down on word of the lower BD contract and spot price, sources said.
Spot prices fell 5 cents/lb from 111-122 cents/lb to 106-117 cents/lb for SBR 1502. For SBR 1712, prices fell from 108-118 cents/lb to 103-113 cents/lb.
The December price for most BD contracts is 76 cents/lb, having decreased by 7 cents/lb from the November contract price.
The BD spot price range moved to 65-75 cents/lb from 75-80 cents/lb.
It is probable that the December SBR contract prices will move down, following the decrease in December BD contract prices. The December contract price will be in late December or early January.
Demand for SBR continues to be lacklustre as buyers have full inventories and the downstream tyre industry has little room for more finished goods.
Some market sources are trying to determine if SBR sellers will lower spot prices in an attempt to move material, or if the sellers will be content with holding their inventories into 2013 with the hopes that market conditions improve.
Several market participants expect demand for SBR will remain lacklustre through the end of the year and into early 2013.
SBR manufacturers in North America include American Synthetic Rubber Co (ASRC), Ashland, Firestone Polymers, Goodyear Tire & Rubber, LANXESS, Lion Copolymer and Negromex.
($1 = €0.76)
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