Spot market offers for styrene butadiene rubber 1500 and 1502 grades in Europe fell a sharp Eur50-100/mt ($54-107/m) this week on lower settlements of feedstocks butadiene and styrene and on erosion of demand, trade sources said.
November contracts for the two synthetic rubber grades were heard being negotiated Eur40-45/mt lower than October, trade sources said.
"Demand for synthetic rubber has fallen as the year draws to an end. Unlike some other commodities, there is no additional demand for SBR during the year-end holiday period and procurement is usually lower than normal," a major European trader said.
All European SBR producers were heard operating their plants normally ensuring no restriction in supplies. Russian producers were heard offering SBR 1500 and 1502 grade parcels at a Eur50/mt discount to the offers from Northwest European producers and traders this week, thus slashing demand for the latter, trade sources said.
"While Russian-origin SBR-1500 and 1502 grade parcels are available at Eur1,000/mt FD NWE, Europe-origin cargoes are being offered at Eur1,050/mt FD NWE and higher," a European trader said.
While the Russian offers fell Eur50 lower from last week levels, the European offers stood Eur50-100 lower.
SBR-1500 and 1502 grade synthetic rubber are primarily used in tire manufacturing.
Monthly contracts under which most of the cargoes in Europe have also fallen, sources said. "November contract prices for SBR 1500 and 1502 grades have fallen by Eur40-45 from October. The drop is slightly less than that recorded in the spot markets," a major European producer said.
The lower offers, that came in line with anticipations, followed lower settlement of feedstocks butadiene and styrene for November. The European butadiene contract price for November was fully settled at Eur625/mt FD NWE, down Eur45/mt from October. The styrene contract for November settled Eur30 lower from October and at Eur960/mt FD NWE.
European SBR 1500 and 1502 grade spot prices were last assessed together at Eur1,050/mt FD NWE.
Butadiene constitutes 80% of SBR, while styrene constitutes the remaining 20%.
