Buyers and sellers alike said that a rollover reflected current stable to soft supply and demand fundamentals and that there was little argument for increases or decreases
“I can confirm a rollover across all grades,” a producer said.
A second producer said it had agreed rollovers “more or less.”
“I can confirm that price roll overs have been confirmed by almost all suppliers,” a large buyer said.
The rollover means that SBR grade 1500 has settled within a €1,470-1,535/tonne FD (free delivered) NWE (northwest Europe) range, SBR grade 1723 at €1,370-1,425/tonne, and SBR grade 1783 at €1,300-1,350/tonne.
The buyer also said that some “cosmetic reductions” had been made in certain cases because of the usually slower market in the July-August period and the effort on the part of certain producers to lock in volume and secure market share.
This is particularly evident in southern Europe according to a couple of sources.
Another buyer already said last week it had secured a decrease of €20/tonne across all grades, while another buyer – a non-tyre producer – this week said it had finalised at an increase of €15/tonne based largely on the €82/tonne increment seen for July styrene. Other large buyers concurred with a rollover.
Availability is good for all synthetic rubbers according to sources. Comparatively higher prices for SBR in Asia has meant export capability to Europe has dried up, even if there was some spot demand – many sources say they are well-covered by their contract volume even if at minimum volume offtake.
There are reports of competitive offers ex-Russia and elsewhere, but details are patchy and given the traditional summer shut down of SBR consuming units in July and August, it is questionable how much spot activity is actually taking place.
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