Europe SBR September contracts rise on feedstocks

07 September 2016 19:41 Source:ICIS News
LONDON (ICIS)--European styrene butadiene rubber (SBR) September contract prices settled at rollovers to small increases, depending on account, because of the upward butadiene (BD) September contract settlement, sources said on Wednesday.

The September contract price for SBR 1500 grade increased by €10/tonne at both ends of the range and was assessed at €1,290-1,325/tonne FD (free delivered) NWE (northwest Europe).

Contracts for 1700 grades increased by single digits with a smaller cost pass through seen when compared to dry grade material.

The September contract price for SBR 1723 grade increased by €5/tonne at both ends of the range and was assessed at €1,235-1,275/tonne FD NWE. SBR 1783 grade increased by €5/tonne at both ends of the range and was assessed at €1,225/tonne-1,265/tonne FD NWE.

The ratio of BD used in SBR production is higher than styrene, so the BD monthly settlement is a key factor in SBR contract negotiations.

Some rollovers were heard on dry grade contracts because of unchanged market conditions despite the recent supply constraints in the upstream BD market.

By Melissa Hurley