SINGAPORE (ICIS)--Major producers of styrene butadiene rubber (SBR) in Asia have hiked their offers for non-oil grade 1502 SBR for March shipments to $1,950-2,000/tonne, industry sources said on Wednesday.
On 5 February, spot prices of non-oil grade 1502 SBR were assessed at $1,850-1,950/tonne CFR (cost and freight) SE (southeast) Asia, according to ICIS data.
“We have increased our March offers as natural rubber [NR] prices have rebounded and we expect the feedstock BD [butadiene] costs to go up as well,” an SBR maker said.
NR is a substitute raw material for SBR in the production of tyres for the automotive industry.
SMR20 grade NR physical prices were at $1,929/tonne FOB (free on board) Malaysia at the Malaysian Rubber Exchange on 11 February, up by about 4% from 7 February.
Expectations that demand will pick up – mostly due to restocking activities – may have also prompted the SBR price hike, market sources said.