The Market Trend of Butadiene Rubber Weakens

September 23, News

Recently (September 17–23), the styrene-butadiene rubber (SBR) market experienced a weak downward trend. According to the commodity market analysis system, as of September 23, the price of butadiene rubber in the East China region stood at 11,780 CNY per ton, down 1.42% from 11,950 CNY per ton on September 17. Meanwhile, the price of its key raw material, butadiene, edged slightly lower, weakening the cost support for SBR. On the production side, SBR plant operating rates saw a modest decline, while downstream tire manufacturers maintained moderately higher operating levels, providing some steady demand support for SBR. However, buyers remained cautious ahead of the upcoming holiday period, largely reluctant to pay premium prices. As of September 23, mainstream quotes for Qilu, Daqing, Sichuan, and Yangtze-branded SBR in East China ranged between 11,700 and 11,900 CNY per ton.

Recently (September 17-23), the price of butadiene has slightly decreased, and the cost support for polybutadiene rubber has weakened. According to the commodity market analysis system, as of September 23, the price of butadiene was 9,240 CNY/ton, a decrease of 0.29% from 9,266 CNY/ton on September 17.

Recently (September 17-23), the operating rate of butadiene rubber plants in China has slightly decreased to around 69%, with Haopu, Yihua, and other butadiene rubber facilities shutting down for maintenance. Later on, Qilu and other butadiene rubber facilities are also scheduled for maintenance, leading to an expected tightening of the supply of butadiene rubber.

Demand side: Recently (9.17~9.23), the downstream tire production slightly increased, providing support for the butadiene rubber market's rigid demand. As of September 18th, the semi-steel radial tire production of Chinese tire enterprises slightly increased to around 75%; in Shandong region, the all-steel radial tire production of tire enterprises slightly decreased to about 65%.

Market Forecast: From a fundamental perspective, analysts believe that, on one hand, downstream pre-holiday inventory buildup combined with planned maintenance shutdowns at some cis-1,4-polybutadiene rubber (BR) plants are providing moderate support to both demand and supply. On the other hand, declining raw material prices have led downstream buyers to approach inquiries about higher-priced supplies with caution, creating some downside pressure on BR prices. Overall, it is expected that BR prices will likely remain weak and consolidate ahead of the holiday period.