Styrene-butadiene rubber market conditions remain weak

December 1st News

Recent (November 19-30) styrene-butadiene rubber (SBR) market conditions in China have been weak. According to the commodity market analysis system, as of November 30, the price of SBR in the East China market was 11,025 CNY/ton, a decrease of 0.23% from 11,050 CNY/ton on the 19th. On one hand, the support from raw materials is weak. On the other hand, downstream tire production has slightly decreased, providing weaker support for SBR; SBR production has slightly increased, and the fundamentals of SBR are weak, leading to a weak and fluctuating market. As of November 30, the mainstream prices for SBR 1502 from Fushun, Jilin, Yangzi, and Qilu in the East China region were around 10,900 to 11,200 CNY/ton.

Recently (November 19-30), the price of butadiene, a raw material, has weakened, while the price of styrene has slightly increased, resulting in weaker cost support for SBR (styrene-butadiene rubber). According to the commodity market analysis system, as of November 30, the price of butadiene was 7,016 CNY/ton, a decrease of 1.64% from 7,133 CNY/ton on November 19; as of November 30, the price of styrene was 6,656 CNY/ton, an increase of 0.94% from 6,594 CNY/ton on November 19.

Recently (11.19~11.30), the operating rate of styrene-butadiene rubber (SBR) plants in China slightly increased to around 76%.

Supply and Demand: Recently (Nov. 19–Nov. 30), downstream tire production has slightly declined, weakening support for the styrene-butadiene rubber market. As of November 27, Chinese tire companies’ semi-steel tire production capacity utilization rate stood at around 68%; in Shandong Province, all-steel tire production capacity utilization rate among tire companies was approximately 62%.

Future Market Forecast: From a fundamental perspective, analysts believe that the current supply of raw materials—butadiene and styrene—is ample, while cost support for SBR rubber remains weak. Moreover, the downstream tire industry provides only weak support for SBR rubber. Overall, it is expected that the SBR rubber market will experience volatile consolidation in the coming period.