India’s SBR costs to rise amid duties on key suppliers
Spot styrene butadiene rubber (SBR) prices in India are expected to jump as South Korean suppliers raised their export offers to the country amid heftier anti-dumping duties (ADDs) imposed on competing suppliers from Europe and Thailand.
SBR supply from Europe and Thailand to India is expected to drop off given ADDs of more than $200/ton that will be attached to Indian imports of non-oil grade 1502 SBR from these countries. South Korean SBR manufacturers, which are subject to much lower ADD rates, have capitalized on the situation by raising their offers for August shipments, industry sources said. Spot offers for non-oil grade 1502 SBR for August shipments of Korea-origin product increased to $1,600/ton CFR (cost and freight) India.
In comparison, prices were assessed at $1,500-1,550/ton CFR India on July 19, according to data from petrochemical market sources. One South Korean SBR producer said: “It is a sellers’ market as there will be less available supply from Europe and Thailand due to the higher anti-dumping duties they have to pay.” The highest ADD rate of $266/ton was recommended for all other EU producers except Synthos, which was assigned a rate of $207.49/ton, based on information released this month by the Directorate General for Anti Dumping and Allied Duties of India.
For Thai SBR producers that sell to India, an ADD rate of $243.60/ton applies. SBR imports from South Korean producers LG Chem and Kumho Petrochemical will be levied ADDs of $28.68/ton and $33.95/ton, respectively. For other Korean producers, a higher $64.00/ton ADD rate applies.