China SBR prices under pressure on oversupply, weak demand
ERJ staff report (BC)
Singapore – Chinese styrene-butadiene-rubber (SBR) prices, on a downtrend since last month, are likely to remain under pressure as a result of oversupply and poor demand from downstream tire makers, Sunny Pan of ICIS reports industry sources as having said on 18 March.
SBR prices fell by yuan (CNY) 1 800-1 900/tonne ($290-306/tonne) to CNY15,400-16,000/tonne for non-oil grade SBR 1502 (ex-works east China) on 14 March from 19 February, according to data from Chemease, an ICIS service in China.
Similarly, in the same period oil-extended grade SBR 1712 fell by CNY1 300-1,400/tonne to CNY14 100-14 600/tonne (ex-works east China).
“We are in a hurry to offload our SBR inventory but find it hard to find buyers when most downstream tire and belt makers have too much feedstock,” a China-based SBR trader is reported to have said.
SBR prices are likely to fall further to attract buying which has slowed down, he added.
The downstream tire makers are staying on the sidelines, as they expect lower prices in the coming weeks, given the ample stock and falling butadiene costs.
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