(ICIS) -- Spot prices of styrene butadiene rubber (SBR) in Asia may remain on an uptrend, possibly breaching $3,000/tonne (┬2,280/tonne) in January 2011, as demand continues to outstrip supply, industry sources said on Tuesday.
Non-oil grade 1502 SBR prices are currently hovering at around $2,800/tonne CFR (cost and freight) Asia, up $200-300/tonne from late October, according to ICIS.
Taking into account the strong demand and limited supply, producers hiked their spot offers for non-oil grade SBR 1502 by $100-200/tonne to $2,900-3,000/tonne CFR (cost and freight) Asia for December and January shipments, market sources said.
Demand was being fuelled by downstream tyre makers switching to the use of SBR from the more expensive natural rubber in tyre production, according to SBR producers.
TSR 20 natural rubber grade prices for January delivery was at $4,200/tonne at the close of trading on Monday, after rising to as high as $4,420/tonne on 10 November, according to data from the Singapore Commodity Exchange (SICOM).
Natural rubber and SBR are substitute raw materials in the production of tyres for the automotive industry, and their prices tend to move in the same direction.