Costs Decline, November Styrene-Butadiene Rubber Market Shows Weak Downward Trend

November 28 News

Costs have decreased, and the SBR (styrene-butadiene rubber) market in November showed a weak downward trend. According to the commodity market analysis system, as of November 28th, the price of SBR in the East China market was 11,025 CNY/ton, a decrease of 2.29% from 11,283 CNY/ton at the beginning of the month. As of November 28th, the main market prices for SBR 1502 from Fushun, Jilin, Yangzi, and Qilu in the East China region were around 10,900-11,300 CNY/ton.

In November, the prices of raw materials butadiene and styrene showed a weak downward trend, leading to a decrease in the cost center of SBR (styrene-butadiene rubber). According to the commodity market analysis system, as of November 28, the price of butadiene was 7,016 CNY/ton, down 6.65% from 7,516 CNY/ton at the beginning of the month; as of November 28, the price of styrene was 6,656 CNY/ton, down 1.42% from 6,752 CNY/ton at the beginning of the month.

In November, the operating rate of styrene-butadiene rubber (SBR) plants in China slightly increased to around 75%.

Demand side: In November, the operating rate of semi-steel tire production in the downstream sector remained stable in the early part of the month but declined slightly toward the end, providing solid support for the styrene-butadiene rubber market. As of November 22, Chinese tire companies’ operating rate for semi-steel tires stood at around 70%; in the Shandong region, tire companies’ operating rate for all-steel tires was approximately 62%.

Market Forecast: From a fundamental perspective, analysts believe that supply of raw materials butadiene and styrene is currently ample, while cost support for SBR rubber remains weak. Meanwhile, the downstream tire industry continues to provide some support for SBR rubber. Overall, we expect the SBR rubber market to experience volatile and consolidating price movements in the coming period.