SBR spot ranges for non-oil grade 1502 and oil-extended grade 1712 dropped by 5 cents/lb ($110/tonne, ?0/tonne) FOB (free on board) USG (US Gulf) from August.
September SBR spot ranges for non-oil grade 1502 were 185-200 cents, while oil-extended grade was 170-180 cents/lb.
Concerns about the global economy and plummeting feedstock values have kept buyers on the sidelines, a producer said.
Buyers will continue to delay purchases if butadiene (BD) prices continue to slide and could push SBR values even lower, the producer said.
The recent softening in BD spot prices, which in September snapped a nine-month uptrend in the US market, is pointing to a major reduction in October, sources said, predicting a two-digit fall for the US contract.
BD contract prices fell on average by 3.3% in September, and another contract drop is likely in October based on the softening in the spot market.
The softening in the US SBR market is in line with a downturn in other regions, and imports from Brazil, Mexico, Korea, China and Russia are plentiful, a seller said.
Pricing for September SBR contracts could weaken slightly and drop further in October to accommodate for lower BD prices, market participants said.
August 1502 contract prices were 183-190 cents/lb, while 1712 prices were 161-169 cents/lb, as assessed by ICIS.
SBR prices have started to slide this month after surging throughout the year on a supply-to-demand imbalance, and rising production costs attributed to climbing feedstock BD values.
North American SBR suppliers include Goodyear, International Specialty Products (ISP), Lion Copolymer and Negromex.
($1 = €.73)
