Costs Decline, SBR Market Trend Weakens in September

September 29, News

Cost support weakened, and the styrene-butadiene rubber market in September showed a weak downward trend. According to the commodity price analysis system, as of September 29, the price of styrene-butadiene rubber in the East China market was 12,000 CNY/ton, a decrease of 3.23% from 12,500 CNY/ton at the beginning of the month. As of September 29, the mainstream quotes for Fushun, Jihua, Yangzi, and Qilu styrene-butadiene rubber 1502 in the East China region were around 11,900-12,150 CNY/ton.

In September, raw materials butadiene and styrene experienced weak downward trends, causing the cost center for styrene-butadiene rubber to shift lower. According to the commodity market analysis system, as of September 29, the price of butadiene stood at 8,900 CNY/ton, down 4.47% from the beginning of the month when it was 9,316 CNY/ton. Meanwhile, styrene prices fell by 5.14% to 7,124 CNY/ton by September 29, compared to 7,510 CNY/ton at the start of the month.

In September, the operation of styrene-butadiene rubber plants in China was at 6.8 to 7.0 ten-thousand tons, indicating that the supply pressure for styrene-butadiene rubber was not high.

Demand side: In September, downstream tire manufacturers maintained steady operations with a slight overall increase in production rates, providing solid support for the styrene-butadiene rubber market. As of September 28, Chinese tire companies had semi-steel tire production running at around 73%, while tire makers in Shandong province saw full-steel tire output rise modestly to approximately 66%.

Market Forecast: From a fundamental perspective, analysts note that supply of key raw materials—butadiene and styrene—is currently ample, while cost support for styrene-butadiene rubber (SBR) is expected to remain weak. Meanwhile, SBR production rates have remained largely stable. On the other hand, the downstream tire industry continues to provide moderate support for SBR demand. Overall, the SBR market is anticipated to experience volatile yet consolidating price movements in the near term.