Platts to Launch Weekly Price Assessments for Synthetic Rubber
LONDON and SINGAPORE, Sept. 5, 2012 /PRNewswire/ — Platts, a leading global energy, petrochemicals and metals information provider and a premier source of benchmark assessments, today announced it will launch four weekly physical market price assessments for styrene butadiene rubber (SBR), a synthetic rubber central to the manufacturing of tires, footwear and other products. The new assessments follow on the 2011 introduction of Platts’ first rubber assessment, the natural rubber index, known as Platts RBX.
Beginning Friday, September 7, 2012, Platts will report weekly price assessments for synthetic rubber delivered into and exported from Europe and for synthetic rubber delivered into northeast and southeast Asia.
“It’s clear from months of research and industry consultation that the spot market for synthetic rubber has grown to where there is a real need for an independent source of price discovery,” said Shahrin Ismaiyatim, Platts global editorial director, petrochemicals. “Just as the Platts RBX brought increased transparency and efficiency to the spot markets in natural rubber, we believe the new SBR assessments will do the same in synthetics.”
The weekly assessments are as follows:
- The Platts Northwest European Styrene Butadiene Rubber (NWE SBR) price assessment reflects five grades of clear emulsion and solution-grade SBR for delivery three to 30 days forward on a free-delivered (FD) basis to inland destinations and free on board (FOB) to export destinations.
- The Platts Asian Styrene Butadiene Rubber (Asian SBR) price assessment reflects one grade of clear emulsion and solution-grade SBR for delivery 30-60 days forward to northeast and to southeast Asia on a cost-and-freight (CFR) basis.
While synthetic rubber is primarily used in tire making, it is also used in the manufacturing of such things as conveyor belts, hoses, sealing devices, gloves, footwear and inflatable devices. More than 15 million metric tons of synthetic rubber was produced in 2011, according to the International Monetary Fund.
Production, as estimated by analysts polled by Platts, is projected to increase as much as six percent by 2014, with production concentrated in Asia, Europe and the United States. However, Europe is expected to remain the largest exporter of synthetic rubber and China and the U.S. are expected to remain its largest consumers.
The new assessments complement Platts’ existing coverage of natural rubber and are available in the real-time news and price delivery service Platts Petrochemical Alert, the Friday edition of the daily published Platts Rubber Index and the weekly newsletter Platts Olefinscan.
The weekly SBR price assessments employ Platts’ Market-On-Close price assessment process for petrochemicals and reflect market value each Friday as of 16:30 GMT, the close of the European physical market trading week and 16:30 local Singapore time for the close of the Asian trading week. Values reflect bids, offers and transactions as determined between buyer and seller in the open market. For cargo size and other details, see the methodology and specification guidelines for European and Asian petrochemicals on Platts’ website.
Platts’ price assessment methodology for rubber was developed in consultation with a cross section of key industry players and policymakers, draws upon Platts’ century of experience in benchmark price reporting in the energy and is underpinned by published quality guidelines available at www.platts.com.
For more information on rubber and petrochemicals, visit www.platts.com.
About Platts: Founded in 1909, Platts is a leading global provider of energy, petrochemicals and metals information and a premier source of benchmark prices for the physical and futures markets. Platts news, pricing, analytics, commentary and conferences help customers make better-informed trading and business decisions and help the markets operate with greater transparency and efficiency. Customers in more than 150 countries benefit from Platts’ coverage of the carbon emissions, coal, electricity, oil, natural gas, metals, nuclear power, petrochemical, and shipping markets. A division of The McGraw-Hill Companies (NYSE: MHP), Platts is headquartered in New York with more than 900 employees in 15 offices worldwide. Additional information is available at http://www.platts.com.
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