Styrene-butadiene rubber market prices rise

December 22nd, according to reports

Recently (December 1st to December 22nd), the styrene-butadiene rubber market in China has shown an upward trend. According to the commodity market analysis system, as of December 22nd, the price of styrene-butadiene rubber in the East China market was 11,400 CNY/ton, an increase of 3.40% from 11,025 CNY/ton at the beginning of the month. The significant rise in butadiene prices has strengthened the cost support for styrene-butadiene rubber. Downstream tire production has slightly decreased, providing some support for the demand for styrene-butadiene rubber; styrene-butadiene rubber production has also slightly decreased, leading to a small increase in market prices. As of December 22nd, the main market quotes for Fushun, Jilin, Yangzi, and Qilu styrene-butadiene rubber 1502 in the East China region were around 11,300 to 11,550 CNY/ton.

Recently (December 1 to December 22), the price of butadiene, a raw material, has significantly increased, while the price of styrene has been weak. The cost support for SBR (styrene-butadiene rubber) has strengthened. According to the commodity market analysis system, as of December 22, the price of butadiene in China was 7,700 CNY per ton, up 10.26% from 6,983 CNY per ton at the beginning of the month; as of December 22, the price of styrene in China was 6,636 CNY per ton, down 0.30% from 6,656 CNY per ton at the beginning of the month.

Recently (December 1-22), the operating rate of styrene-butadiene rubber facilities in China slightly decreased to around 79%.

Supply and Demand: Recently (Dec. 1–Dec. 22), downstream tire production has slightly declined, providing moderate support for the styrene-butadiene rubber market. As of December 19, Chinese tire companies’ semi-steel tire production capacity utilization rate stood at around 71%; in Shandong Province, full-steel tire production capacity utilization rate among tire companies was approximately 63%.

Future Market Forecast: From a fundamental perspective, analysts believe that although the cost support for styrene-butadiene rubber (SBR) is currently strong, the overall supply-demand situation remains relatively weak. Therefore, it is expected that the SBR market will mainly experience volatile and consolidating trends in the short term.