Styrene-Butadiene Rubber Market Struggles to Find Direction

October 21st, according to reports

Recently (10.14~10.21), the styrene-butadiene rubber (SBR) market in China has been consolidating at a weak level. According to the commodity market analysis system, as of October 21, the price of SBR in the East China market was 11,525 CNY/ton, down 0.14% from 11,541 CNY/ton on October 14. On one hand, the support from raw materials is relatively weak. On the other hand, after the holiday, the resumption of tire production downstream provides some support for the demand for SBR; SBR production remains largely stable, and the SBR market is in a state of weak equilibrium, with the overall market trend being consolidation at a weak level. As of October 21, the mainstream prices for SBR 1502 from Fushun, Jilin, Yangzi, and Qilu in the East China region were around 11,450 to 11,650 CNY/ton.

Recently (October 14-21), the price of butadiene, a raw material, has been in a narrow range, while the price of styrene has weakened. The cost support for SBR (styrene-butadiene rubber) is relatively weak. According to the commodity market analysis system, as of October 21, the price of butadiene in China was 8,440 CNY/ton, unchanged from the 14th, and 1.28% higher than the low point of 8,333 CNY/ton during the period. As of October 21, the price of styrene in China was 6,834 CNY/ton, down 2.65% from 7,020 CNY/ton on the 14th.

Recently (October 14-21), the operation of styrene-butadiene rubber plants in China has been basically stable, at around 69%.

Supply and Demand: Recently (Oct. 14–Oct. 21), downstream tire manufacturers have gradually resumed operations following the holiday period, providing solid support for the demand-driven styrene-butadiene rubber market. As of October 17, China's tire companies saw semi-steel tire production capacity utilization slightly rise to around 71%; meanwhile, in Shandong province, all-steel tire production capacity utilization edged down slightly to approximately 64%.

Market Forecast: From a fundamental perspective, analysts believe that the current supply and demand for styrene-butadiene rubber (SBR) remain generally weak, suggesting that SBR prices are expected to fluctuate sideways in the near term.