6.08.13

SUMMARY: BUTADIENE - SYNTHETIC RUBBER - NATURAL RUBBER

The U.S. butadiene contract price marker decreased to 42.6 cents per pound ($939 per ton) for August. In Asia, butadiene prices continued their downward course in the first half of July. In Europe, market conditions and the outlook for demand in the next few months will not see any significant improvement. The European contract price of July was €1,000 per metric ton. For August, the price was settled with a significant decrease of €250 per metric ton to €750 per metric ton.

In the U.S., synthetic rubber market conditions remain extremely challenging. The synthetic rubber market in Europe saw the first signs of a slight recovery in demand for replacement tires. In Asia, the soft synthetic rubber trend carried on as demand from tire makers did not improve.

Average July natural rubber prices on the SICOM fell 4 cents from June, averaging roughly $1.02 per pound ($2,243 per ton) for the month. Natural rubber prices have been affected by slower growth in the major economies and by high inventories. Export restrictions in Southeast Asia have ended, but there has been no real impact on prices as they have continued to trend lower