Tyre Producers Now Paying for BR Monthly
A number of tyre makers have reportedly opted to settle their Asian butadiene rubber (BR) contracts on a monthly basis amidst weak demand causing a volatile pricing environment. According to a news report published on icis.com, BR contracts in Asia are usually settled on a quarterly basis. “BR January spot prices have plunged to around $1,100/tonne (€836/tonne) CFR (cost and freight) Asia, down by more than 70 per cent from its peak of $4,000/tonne CFR Asia in the fourth quarter last year,” the website reported.
“By April, there will be a clearer price direction but certainly in the first quarter of this year, prices are expected to fall further to around or below $1,000/tonne CFR Asia,” the website quoted one Indian tyre manufacturer as saying.