Asia’s demand for styrene butadiene rubber (SBR) may pick up in late May or early June as the movement restriction measures put in place to contain the coronavirus pandemic are being eased in phases across different countries in the region.
In southeast Asia, Vietnam has reopened for business, one of the first in the region to resume business, following the slowdown in the virus spread due to its early implementations of movement restriction measures, including mass quarantine and lockdowns.
“Demand is still slow due to the high inventories, but we expect more enquiries in the coming weeks,” a rubber trader said.
“Crude has gone up and we are expecting enquiries for SBR to pick up for May,” another trader said.
Non-oil grade 1502 SBR prices fell by $50/tonne week on week to $850-900/tonne CFR (cost & freight) southeast (SE) Asia on 29 April, ICIS data showed.
Although India extended its lockdown period beyond 4 May, the government has granted permission for companies to resume business in a phased manner in certain select areas which are designated as 'green zones’.
Although interstate transportation may still be an obstacle for automotive companies, market players are cautiously optimistic as enquiries for imports have emerged.
“We are seeing more enquires for late May or early June shipments from tyre makers in India,” a separate rubber trader said.
The average spot price for non-oil grade 1502 SBR tumbled by more than 30% since early February to $875/tonne CFR India on 29 April, ICIS data showed.
China had earlier lifted lockdowns and eased restriction measures, prompting spot interest to pick up for SBR imports recently.
“We understand that several Asian SBR makers had shipped out several thousand tonnes of non-oil grade 1502 to China recently at competitive rates,” a rubber supplier said.
Non-oil grade 1502 SBR spot prices fell by $50-100/tonne week on week to $800-900/tonne CIF (cost, freight and insurance) China on 29 April, ICIS data showed.
