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Saturday, November 27, 2021

Asian buyers will strongly resist BR price rose sharply

Insiders March 4, due to weak demand and natural rubber (NR) prices fall, Asia butadiene rubber (BR) producers or difficult to achieve price increases planned to deliver the goods in March.

Market sources said BR spot price in Asia 2800-2900 (t price, the same below) (CFR Northeast Asia), representing ICIS 28 days to assess the price of $ 250, is expected to have been the strong resistance of the buyers .According to ICIS Asia BR spot trading price of 2550-2650 dollars (CFR Northeast Asia), up $ 150 in mid-February.

Market participants pointed out that, due to feedstock butadiene prices continued to rise, BR manufacturer hopes to raise its offer to return to profitability. The data show that as of March 1 week, Asian markets butadiene average price of $ 2050 (CFR Northeast Asia) rose by about 16%, or $ 400, compared to January 4.

However, by Europe remains mired debt crisis and China’s latest statistics show that the impact of a slowdown in manufacturing activity in February, the uncertain outlook for the global market, resulting in downstream tire manufacturers demand remains weak. A major tire manufacturer, said: “The cost factor is driving the BR prices, but the demand is still weak, so BR offer higher than $ 2700 (CFR Northeast Asia) is not feasible, taking into account the current weak market conditions, it is difficult to cost passed to the customer. “

In addition, the decline in the prices of natural rubber is also a further blow to the BR market. NR and BR are substitutes in tire production, so the price is more closely linked. February 28 Malaysian Rubber Exchange SMR20NR price of $ 2,920 (FOB Malaysia), February 6 $ 210 prices. Insiders said that the Chinese market NR very ample inventory, which will put more pressure on NR prices also will affect the price of synthetic rubber.Industry sources say that if the lower-than-expected growth in car sales, demand for tire manufacturers will slow, which will suppress the prices of synthetic rubber. In 2012, China’s auto sales grew 4.3% to 19.3 million units, an increase of only half of the projected by the China Association of Automobile Manufacturers. The association predicted that China’s auto sales to grow by 7% in 2013.

A tire manufacturer, said: “Based on the current market situation, the Asian tire manufacturers have taken a cautious approach, not the price of $ 2700 (CFR Northeast Asia) buying large quantities of BR.

Translated by Google Translator from http://market.cria.org.cn/25/13310.html

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