Price and market trends: US June SBR contract falls 4 cents/lb on lower BD costs

14 June 2013 09:31  [Source: ICB]

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

 
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, and LANXESS.


Author: Mark Yost



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