11 September 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European styrene butadiene rubber (SBR) September contract prices have increased because of rising feedstock styrene and butadiene (BD) prices, sources said on Wednesday.
The range of 1500 grade narrowed with a decrease of €25/tonne on the higher end, but an increase of €30/tonne on the low end.
The price of 1500 grade SBR settled at €1,370-1,450/tonne ($1,827-1,933/tonne) FD (free delivered) NWE (northwest Europe), while 1723 settled at €1,270-1,350/tonne FD NWE, an increase of €20/tonne on the low end. 1783 settled at €1,230-1,300/tonne FD NWE, €30/tonne higher.
The price of BD and styrene increased by €25/tonne and €85/tonne respectively and producers were keen to pass these on to buyers. The market seems to have accepted this as supply and demand are more balanced following maintenance shutdowns and production cuts.
Sales might increase during the next 4-6 weeks if consumers decide to pre-buy to avoid paying even more in October when further price hikes are expected due to rising BD costs.
One major SBR producer expects a €50-100/tonne increase in the price of BD in October which will more than likely result in another SBR hike.
It said that because European BD is now cheaper than material in Asia, the SBR arbitrage window has reopened again and it is now selling to Asia at around $1,690-1,750/tonne FOB (free on board) European port.
($1 = €0.75)
Follow Janos Gal on Twitter @janosgalICIS
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