ERJ staff report (DS)
Singapore -- World chemical price tracking company ICIS is reporting that spot polybutadiene prices are soaring. The company said, "Butadiene rubber (BR) spot offers in Asia rose to a fresh record of $3,000/tonne CFR (cost and freight) Asia for February shipments, driven by a relentless upward spiral in butadiene (BD) feedstock price, producers said on Friday." This compares with contract prices of around $2150/tonne in the first quarter, said ICIS/
ICIS quoted a Korean producer saying it had already sold BR for $2900/tonne to China, and is now offering BR at spot rates of $3000/tonne. The price hikes are being driven by soaring prices of butadiene monomer which are "going up by nearly $100/tonne every week.", according to the supplier quoted by ICIS.
ICIS quoted a tyre maker saying, "We will cut BR consumption and switch to other substitutes and secure BR from Europe and the US," a major downstream tyre producer said, adding that he could procure BR at around $2,400/tonne CFR Asia on a spot basis from Europe."
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Story from ICIS