ICIS says tyre makers substituting NR with cheaper SBR

ERJ staff report (DS)

London -- In a brief, but informative, report on the market for styrene-butadiene rubber (SBR), ICIS says, "SBR is being substituted for higher-cost natural rubber. Supply, which was tight in H1, has eased and is said to be balanced now, with stocks at normal levels. "

The report shows prices of the less technical variant, E-SBR reached almost euro 2000/tonne in July 2010, on the high price of butadiene monomer, but have since eased slightly, following a euro 155/tonne drop in Q4 butadiene contracts.

ICIS said the market expects to move to monthly pricing on contracts from early 2011, in place of quarterly contracts, signalling further volatility in the markets.

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Press release from ICIS