07 August 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European styrene butadiene rubber (SBR) contract prices have fallen sharply because of a 25% drop in the feedstock butadiene (BD) August contract price and poor demand, sources said on Wednesday.
The August BD contract price dropped by €250/tonne ($333/tonne) while the co-feedstock styrene August contract price increased by €47/tonne in August. SBR contains approximately 75% BD and 25% styrene.
European producers describe demand as weak and the market as flat. One producer said that activity in the market is subdued and SBR prices are under continued pressure. A second producer was confident that prices are going up in Asia, and Asian imports are becoming less competitive.
Some downstream tyre manufacturers have shut down their plants in August. The tyre industry is the major end user of SBR.
1500 grade August contract prices were finalised at €1,340-1,475/tonne FD (free delivered) NWE (northwest Europe).
1723 grade August contract prices settled at €1,250-1,350/tonne FD NWE.
1783 grade August contract prices were agreed at €1,200-1,300/tonne FD NWE.($1 = €0.75)
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