Petrotahlil --US styrene butadiene rubber (SBR) spot prices rose slightly in line with contract values amid firmer sentiment in global markets.
Spot prices are heard at contract price levels in the US, although spot buying interest remains muted while downstream tyre producers ramp up their operations.
Supply is available despite lower overall rates during Q2 closures as the market slowly recovers.
Margin pressures stemming from rising costs have emerged globally, adding upward pressure to SBR spot prices in Europe and Asia. Naphtha-based butadiene (BD) producers in those regions are more sensitive to crude pressures.
Demand for imported material is limited as US companies have not yet returned to pre-coronavirus operational levels.
Globally, spot pricing for non-oil-grade SBR is trending in the 40s cents/lb.
US spot prices rose by 2 cents/lb ($44/tonne) on the low end of the ranges.
US non-oil-grade 1502 spot prices are assessed at 45-50 cents/lb FOB (free on board), while oil-extended 1712 spot prices are assessed at 48-53 cents/lb FOB.
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SBR is used in tyres, basement waterproofing systems, building applications and rubber cutting boards.
Major North American SBR producers include Dynasol, Goodyear Tire & Rubber and Lion Elastomers.
Source : ICIS