14 March 2013 20:29 [Source: ICIS news]
MEXICO CITY (ICIS)--Styrene butadiene rubber (SBR) market participants in the Americas need to nurture long-term business relationships in Asia, an industry source said on Thursday.
Asian business is generally conducted on a spot basis, resulting in volatile pricing for raw materials exported to the Americas, the source said on the sidelines of the 18th annual Plastimagen international plastics exposition and conference.
However, participants in the downstream tyre business in the US and Mexico prefer to work with steady raw-material supply and longer-term pricing commitments.
Asian sellers of products into the Americas' SBR and tyre markets are gradually adopting reliable longer-term business relationships, according to the source. However, it will take years to develop and integrate steady mutual commitments into a consistent working model and to get away from a market focused on spot deals, the source admitted.
Plastimagen ends on Friday.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections