05 November 2013 17:03 [Source: ICIS news]
LONDON (ICIS)--European styrene butadiene rubber (SBR) market players had largely expected November’s steep styrene contract price fall, as they felt that prices had been over-inflated during the last six month, sources said on Tuesday.
The styrene barge contract settled at €1,365/tonne ($1,845/tonne) FOB (free on board) ARA (Amsterdam, Rotterdam and Antwerp) on 4 November, down by €85/tonne due to lower November benzene and ethylene costs amid seasonally weaker demand.
Market sources expected further softness or rollovers for styrene before the end of the year as players aim to keep inventory levels as low as possible.
One SBR producer, a buyer of the feedstock styrene, was pleased with the €85/tonne decrease as it had only anticipated a €50/tonne price drop.
One trader said “it was no surprise that styrene fell as much as it did”.
With November’s SBR contract price discussions underway, sources anticipated a €50-60/tonne increase.
($1 = €0.74)
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