Styrene-Butadiene Rubber Market Shows Weak Downward Trend

October 14, News

Recently (10.1~10.14), the styrene-butadiene rubber market in the East China region has shown a weak downward trend. According to the commodity market analysis system, as of October 14, the price of styrene-butadiene rubber in the East China market was 11,541 CNY/ton, a decrease of 2.81% from 11,875 CNY/ton at the beginning of the month. The prices of raw materials butadiene and styrene have also shown a weak downward trend, leading to a slight decrease in the cost of styrene-butadiene rubber. During the holiday period, the operation rate of downstream tire manufacturing significantly decreased, providing weaker support for the styrene-butadiene rubber market; however, the production of styrene-butadiene rubber remained largely stable. As of October 14, the main market quotation for styrene-butadiene rubber 1502 in the East China region, produced by Fushun, Jihua, Yangzi, and Qilu, was around 11,450 to 11,600 CNY/ton.

Recently (October 1–14), raw material prices for butadiene and styrene edged lower, weakening cost support for styrene-butadiene rubber. According to the commodity market analysis system, as of October 14, the price of butadiene stood at 8,446 CNY/ton, down 4.95% from 8,886 CNY/ton at the beginning of the month. Meanwhile, styrene prices fell slightly to 7,020 CNY/ton by October 14, a 1.40% decrease from the earlier figure of 7,120 CNY/ton in early October.

Recently (Oct 1st to Oct 14th), the operation of styrene-butadiene rubber facilities in China has been basically stable, around 69% capacity.

Supply and demand: Recently (October 1st to October 14th), due to the impact of the National Day holiday, the average operating rate of downstream tire factories has significantly decreased, having a negative effect on the styrene-butadiene rubber market. As of October 9th, the operating rate of semi-steel tire production in Chinese tire companies slightly increased to around 42%; in Shandong region, the operating rate of all-steel tire production in tire companies slightly decreased to about 42%.

Outlook: From a fundamental perspective, analysts believe that the current supply and demand situation for styrene-butadiene rubber in China is generally weak, and it is expected that the market for styrene-butadiene rubber will mainly experience a weak and fluctuating trend in the short term.