(ICIS) -- Asian styrene butadiene rubber (SBR) prices have rebounded sharply on surging natural rubber (NR) prices and are likely to remain firm on news that major automakers in Japan are restarting their operations, industry sources said on Wednesday. Spot offers for non-oil grade 1502 SBR have been raised by USD 100-200/tonne to USD 4.000-4.100/tonne CFR (cost & freight) Southeast (SE) Asia and India, according to several Asian SBR producers.
The surge in demand for SBR is driven by soaring NR prices as well as improved sentiment, following news that major Japanese automakers, including Nissan and Mazda are resuming production this week after a massive earthquake struck Japan on 11 March.
The 9.0-magnitude earthquake, which triggered off a tsunami, caused extensive damage to Japan's infrastructure and disrupted power supply, crippling production down the supply chain.
Major Japanese automakers including Toyota, Honda, Nissan and Mazda as well as tyre producers such as Bridgestone, Toyo Tire & Rubber and Yokohama Rubber and SBR producers, including Zeon and JSR Corp, had to reduce or halt production in the wake of the natural disaster.