Styrene-Butadiene Rubber Market Faces Weak and Declining Trends

November 13, News

Recently (November 1–13), the styrene-butadiene rubber (SBR) market experienced a weak downward trend. According to the commodity price analysis system, as of November 13, the price of butadiene rubber in the East China region stood at 10,650 CNY per ton, down 4.48% from the beginning of the month (11,150 CNY/ton) but up 1.91% compared to the period’s lowest point of 10,450 CNY/ton.

On one hand, declining raw material butadiene prices have significantly lowered the cost base for SBR, putting pressure on profit margins. Meanwhile, some previously shut-down production units have resumed operations, leading to a slight increase in SBR plant operating rates and a marginal rise in supply availability. On the other hand, downstream tire manufacturers have seen a modest rebound in production activity, providing some steady demand support for SBR—but they remain cautious about purchasing at higher price levels. Overall, SBR fundamentals continue to lean toward weakness.

As of November 13, mainstream quotes for Qilu, Daqing, Sichuan, and Yangtze-region SBR products in East China ranged between 10,500 and 10,850 CNY per ton.

Recent international crude oil prices have weakened again, and butadiene prices in China have also declined, leading to weaker cost support for polybutadiene rubber. According to the commodity market analysis system, as of November 13, the price of butadiene was 7,000 CNY/ton, a decrease of 6.87% from 7,516 CNY/ton at the beginning of the month.

Recently (Nov 1-13), the operating rate of China's polybutadiene facilities has slightly increased to around 70%. Polybutadiene units at Qilu Petrochemical, Sichuan Petrochemical, and Yangzi Petrochemical have restarted with feedstock input. Additionally, the polybutadiene unit at Zhenhua is currently shut down for maintenance, and there are plans for some other units to also undergo maintenance later. The supply pressure for polybutadiene rubber is expected to ease somewhat in the future.

Demand side: Recently (Nov. 1–13), downstream tire production activity saw a slight increase, providing solid support for the butadiene rubber market. As of November 7, Chinese tire companies' semi-steel tire operating rates edged up to around 74%, while tire manufacturers in Shandong province experienced a minor decline in all-steel tire output, falling to approximately 65%.

Market Forecast: From a fundamental perspective, analysts note that several butadiene rubber production units are scheduled for planned maintenance in the coming period. Meanwhile, international crude oil prices have weakened again, continuing to weigh on the cost structure of butadiene rubber. On the downstream side, tire demand remains steady due to essential requirements, while any new growth in demand remains limited. Overall, it is expected that butadiene rubber prices will likely fluctuate weakly over the short term.