Styrene-Butadiene Rubber Market Shows Slight Consolidation

September 8, News

Recently (September 1-8), the styrene-butadiene rubber (SBR) market in China has seen minor adjustments. According to the commodity market analysis system, as of September 8, the price of SBR in the East China market was 12,491 CNY/ton, a decrease of 0.07% from 12,500 CNY/ton on September 1. The price of butadiene, a raw material, saw a slight increase, while the price of styrene decreased slightly, still providing cost support for SBR. The operation rate of downstream tire manufacturers fluctuated slightly, offering stable demand support for SBR. The production of SBR remained largely stable with no significant supply pressure. As of September 8, the mainstream prices for SBR 1502 from Fushun, Jilin, Yangzi, and Qilu in the East China region were around 12,400 to 12,600 CNY/ton.

Recent (9.1~9.8) butadiene prices in China have slightly increased, while styrene prices have slightly decreased, and the cost support for SBR (styrene-butadiene rubber) continues. According to the commodity market analysis system, as of September 8th, the price of butadiene was 9,400 CNY/ton, an increase of 0.89% from 9,316 CNY/ton on September 1st; as of September 8th, the price of styrene was 7,486 CNY/ton, a decrease of 0.32% from 7,510 CNY/ton on September 1st.

Recently (September 1-8), the operation of styrene-butadiene rubber (SBR) facilities in China has remained stable at around 68% capacity. The 200,000 tons/year SBR facility of Fushun Petrochemical, which consists of four production lines, has been gradually shut down for maintenance since August 15.

Supply and Demand Overview: Recently (Sept. 1–8), downstream tire manufacturers saw a slight adjustment in operating rates, providing solid support for the styrene-butadiene rubber market. As of September 5, China's tire companies reported semi-steel tire production capacity utilization slightly rising to around 73%; meanwhile, all-steel tire producers in Shandong province experienced a marginal decline, with utilization dropping to approximately 64%.

Market Forecast: From a fundamental perspective, analysts believe that the current cost of styrene-butadiene rubber remains well-supported; production rates for SBR have remained relatively stable; and the downstream tire industry continues to provide solid support for SBR. As the peak season approaches, we expect the SBR market to experience volatile yet upward price movements in the near term.