12 June 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European June styrene butadiene rubber (SBR) contract prices have dropped by €80-140/tonne ($107-187/tonne) because of lower feedstock butadiene (BD) costs and weak demand, sources said on Wednesday.
The price of 1500 grade SBR settled at €1,700-1,800/tonne free delivered (FD) northwest Europe (NWE), while the price of 1723 grade is at €1,550-1,650/tonne FD NWE. The price of 1783 grade SBR settled at €1,500-1,600/tonne FD NWE.
Demand from the downstream tyre industry continues to be weak, and there are no signs of improvement in the near term.
Imports from Russia seem to have slowed and some sources expect that this may help stabilise prices. In eastern Europe especially, prices dropped significantly in recent weeks on the back of poor downstream demand and cheap Russian imports.
According to one buyer, negotiations were tough as sellers did not want to reduce their prices by as much as buyers were looking for. In the end, because of lower BD numbers and because stocks were building up, producers lowered prices in an effort to shift volumes.
($1 = €0.75)
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