Cost Support: Styrene-butadiene rubber market prices rise sharply

January 26th, News

Recently (1.1~1.26), the styrene-butadiene rubber market in China has significantly increased. According to the commodity market analysis system, as of January 26th, the price of styrene-butadiene rubber in the East China market was 12,883 CNY/ton, an increase of 11.30% from 11,575 CNY/ton at the beginning of the month. The prices of raw materials, butadiene and styrene, have risen sharply, providing strong support for the cost of styrene-butadiene rubber. Downstream tire production has slightly increased, supporting the demand for styrene-butadiene rubber; the production of styrene-butadiene rubber has also slightly increased, leading to a significant rise in market prices driven by cost, although downstream inquiries are somewhat cautious. As of January 26th, the mainstream price of styrene-butadiene rubber 1502 from Fushun, Jilin, Yangzi, and Qilu in the East China region was around 12,750 to 13,050 CNY/ton.

Recently (1.1~1.26), the prices of butadiene and styrene, which are raw materials, have significantly increased, providing strong support for the cost of SBR (styrene-butadiene rubber). According to the commodity market analysis system, as of January 26, the price of butadiene in China was 10,733 CNY per ton, an increase of 28.80% from 8,333 CNY per ton at the beginning of the month; as of January 26, the price of styrene in China was 7,754 CNY per ton, an increase of 14.70% from 6,760 CNY per ton at the beginning of the month.

Recently (Jan 1 to Jan 26), the operating rate of styrene-butadiene rubber (SBR) plants in China has slightly increased to around 83%.

Supply and Demand: Recently (from Jan. 1 to Jan. 26), downstream tire production has slightly increased since the beginning of the month, providing solid support for the styrene-butadiene rubber market. As of Jan. 26, the operating rate of semi-steel tires at Chinese tire companies rose from 6.7% at the start of the month to around 7.5%. In Shandong Province, the operating rate of all-steel tires at tire companies increased from 5.8% at the start of the month to approximately 6.3%.

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 high-level fluctuations in the short term.