US June SBR contract falls 4 cents/lb on lower BD costs

04 June 2013 20:28  [Source: ICIS news]

HOUSTON (ICIS)--The June contract price for styrene-butadiene-rubber dropped by 4 cents/lb ($88/tonne, €67) on lower costs for key feedstock butadiene (BD), sources said on Tuesday.

For June, the average contract price for SBR 1502 is 115.50 cents/lb, down from an average high of 134 cents/lb a year ago. The June contract average price for SBR 1712 is 98.50 cents/lb, also down from an average high of 114 cents/lb a year ago.

SBR has been plagued over the past year by a global slowdown in the replacement-tyre market. US SBR has been under added pressure in the past few months from Asian-made SBR, which is about $400/tonne cheaper and has been coming into the US market.

US SBR producers had been pressuring US BD producers to bring prices down to help make US-made SBR more competitive. US BD has been under its own pricing pressures. The monthly US BD contract price has dropped from 84 cents/lb in April among the three producers that account for about 85% of the market, to 79 cents/lb in May and, now, 74 cents/lb in June.

Further hurting US SBR producers is the strength of the dollar, which makes Asian goods even cheaper.

Among the major North American producers of SBR are Ashland, Negromex, Lion Copolymer, American Synthetic Rubber Co (ASRC) and LANXESS as well as several of the tyre companies that make it for their own use.

($1 = €0.76)      

By: Mark Yost
+1 713 525 2653

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