Market sources indicate that spot styrene butadiene rubber (SBR) spot prices in southeast (SE) Asia are likely to further decline due to soft demand amid an ample supply. The decreasing prices of feedstock butadiene (BD) and of rival natural rubber (NR) also contribute to the market’s drop.
Spot offers for non-oil grade 1502 SBR at S$1,400/tonne CFR (cost and freight) SE Asia have found little buying interest as customers keep lean inventories. According to one trader, spot offers for SBR 1502 are being pressured to drop because of the weak demand and the decreasing feedstock BD and NR prices.
ICIS data showed that spot prices were assessed at S$1,350-1,400/tonne CFR SE Asia, down by $100/tonne from the previous month on June 8. BD prices have also fallen by about 17% since early May to average at S$885/tonne CFR SE Asia on June 10.
A tyre maker said that their buying indications are no higher than S$1,350/tonne CFR SE Asia for June shipments of non-oil grade 1502 SBR.
The SMR20 tyre grade NR price was at S$1,255/tonne at the Malaysian Rubber Exchange at noon on June 14, down by S$230/tonne from early May. SBR and NR are rival raw materials for the production of tyres for the automotive industry and their prices tend to move in tandem with each other.