August styrene-butadiene rubber market trend fluctuates and slightly rises in China

August 29 update

In August, the SBR (styrene-butadiene rubber) market in China showed a slight increase with fluctuations. According to the commodity market analysis system, as of August 29, the price of SBR in the East China market was 12,500 CNY/ton, up 3.23% from 12,108 CNY/ton at the beginning of the month. As of August 29, the main market prices for SBR 1502 produced by Fushun, Jilin, Yangzi, and Qilu in the East China region were around 12,400-12,600 CNY/ton.

In August, the price of raw material butadiene increased, while the price of styrene decreased slightly, still providing some support to the cost of SBR (styrene-butadiene rubber). According to the commodity market analysis system, as of August 29, the price of butadiene in China was 9,283 CNY/ton, an increase of 2.58% from 9,050 CNY/ton at the beginning of the month; as of August 29, the price of styrene in China was 7,550 CNY/ton, a decrease of 1.26% from 7,646 CNY/ton at the beginning of the month.

In August, the operating rate of styrene-butadiene rubber (SBR) plants in China decreased to around 68%. The 200,000 tons/year SBR plant of Fushun Petrochemical, which has four production lines, began to shut down for maintenance sequentially starting from August 15.

Demand side: In August, the downstream tire production slightly increased, providing support to the demand for styrene-butadiene rubber. As of August 22, the semi-steel tire production of Chinese tire companies slightly increased to around 74%; the all-steel tire production of tire companies in Shandong Province slightly increased to about 65%.

Market Forecast: From a fundamental perspective, analysts believe that the current cost of styrene-butadiene rubber continues to provide support. Meanwhile, SBR plant operating rates have edged slightly lower. On the downstream side, the tire industry remains a solid support for SBR demand. As the peak season approaches, overall market conditions suggest that SBR prices are expected to fluctuate and gradually rise in the near term.