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Taking into account the dual factors of strong demand and limited supply, producers have now increased the spot price for non-oil grade 1502 SBR delivered in December and next January by US$100 to US$200/ton to US$2,900 to US$3,000/ton ( CFR, Asia).
According to the International Rubber Research Group (IRSG), global rubber demand is expected to reach 23.9 million tons in 2010, and demand will reach 25.5 million tons in 2011. Driven by the strong growth in automobile sales in Asia, especially in China and India, the demand for natural rubber and synthetic rubber has soared. The China Association of Automobile Manufacturers expects China’s auto sales to exceed 17 million units this year. Last year China surpassed the United States as the world’s largest auto market with more than 13 million cars sold. This year, India's auto sales will reach 2.5 million units, an increase of 19% over 2009.
Due to the current high price of natural rubber in the market, downstream tire manufacturers have begun to switch to SBR raw materials, which has stimulated strong growth in market demand. According to data from the Singapore Commodity Exchange, the current price of TSR 20 natural rubber delivered in January of next year was 4,200 US dollars/ton, and on November 10, it also hit a record high of 4,420 US$/ton. Both natural rubber and SBR are raw materials for automobile tire manufacturing and can be substituted for each other, so the price trend of these two products is generally consistent.
However, some analysts also said that there is not much room for SBR prices to continue to rise significantly, because China will have about 250,000 tons of new SBR capacity put into production in the near future. Among them, the Hangzhou Zhechen Rubber Co., Ltd. newly built a 50,000-ton/year SBR plant that has already been put into operation. Two new SBR units in Tianjin and Fujian, China, are also scheduled to be put into operation early next year, with a total capacity of 200,000 tons/year. While SBR producers are optimistic about the market outlook, downstream tire manufacturers are trying to resist the raw material price increase, because their profitability space is being eroded.
The metal Convection heater warm the room as it passes over a heated coil; some use a fan to forced in the cool air to heat. The heated air rises naturally or is forced out by a fan and spreads into the space to warm room.
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