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(ICIS) -- US butadiene prices should
rebound in 2012 after falling sharply since the last of the third quarter, TPC
Group CEO Mike McDonnell said on Friday. However, destocking will continue
through the rest of 2011, as companies push for a minimal amount of inventory
for the end of the year, McDonnell said during the company's third quarter
earnings conference call. McDonnell said it is doubtful that the soft market and
low prices will be an issue a few months into 2012.
Many of TPC’s customers have indicated a more optimistic outlook for
2012. For example, two tyre manufacturers have planned significant building or
expansion plans because they forecast an increased demand for tyres, McDonnell
said. BD is a key component in styrene butadiene rubber, which is used to
manufacture tyres.
He also said when BD prices fell in 2009 to 45 cents/lb ($992/tonne,
?734/tonne), it rebounded to an average price of 84 cents/lb in 2010. He
believes a rebound is in the future for BD again in 2012.
Additionally, there
are five ethylene crackers with a planned maintenance turnaround in the first
and second quarters of 2012 that will reduce supply on a temporary basis and
should drive up the cost of BD, McDonnell said.
Perspectives of development of polymer markets, pricing issues and other
important aspects will be discussed at The Polymers
Summit-2011, which will be held in Moscow on November 30, 2011 at the
Ritz Carlton Hotel. The Summit will be organized by MRC with the support of
ICIS. The main idea of the Summit is to find a "the golden mean" between
producers and converters. When producers receive exactly such margin of
production, which helps them to invest in production expansion in order to
substitute polymers imports, and the converters receive such price of feedstock
that helps them to compete imported finished products. The Summit site gives an
access to the live video of the Summit, speakers" presentations, as well as
opportunities to ask questions or make appointments to any Summit
partcipant.
mrcplast.com
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