Styrene-butadiene rubber market prices surge and then fall after the holiday

February 27 News

After the holiday, the styrene-butadiene rubber (SBR) market experienced a surge followed by a pullback. According to the commodity price analysis system, as of February 27, the SBR price in the East China market stood at 13,141 CNY per ton, down 0.88% from the previous day’s price of 13,258 CNY per ton on February 24. The decline in the price of butadiene—the raw material—has weakened the cost support for SBR. Meanwhile, downstream tire production remains at low levels, resulting in weak demand-driven support for SBR. On the supply side, SBR availability is ample. On the first trading day after the holiday, influenced by overseas markets and Shanghai rubber futures prices during the holiday period, the SBR market initially surged significantly. However, downstream buyers adopted a wait-and-see attitude, leading to a stalemate in transactions, and subsequently, prices gradually declined over the following days. As of February 27, the mainstream quoted prices for SBR 1502 in East China—produced by Fushun, Jihua, Yangzi, and Qilu—ranged around 12,950 to 13,250 CNY per ton.

After the holiday, the price of butadiene, a raw material, has significantly decreased, while the price of styrene has slightly increased, leading to weaker cost support for SBR (styrene-butadiene rubber). According to the commodity market analysis system, as of February 27, the price of butadiene in China was 10,000 CNY/ton, a decrease of 3.85% from 10,400 CNY/ton on February 24; as of February 27, the price of styrene in China was 7,630 CNY/ton, an increase of 1.33% from 7,530 CNY/ton on February 24.

In February, the operation of styrene-butadiene rubber (SBR) plants in China remained at a high level, with ample supply.

Supply and Demand: After the holiday, downstream tire manufacturers have been slowly resuming operations, leading to mostly small, wait-and-see inquiries for rubber. This has resulted in weak support for the styrene-butadiene rubber market. Although export orders are anticipated, they have yet to provide substantial impetus. Overall, demand for styrene-butadiene rubber remains to be fully restored.

Outlook: From a fundamental perspective, analysts believe that the current cost support for styrene-butadiene rubber in China has weakened, with ample supply and weak demand. It is expected that the market trend for styrene-butadiene rubber in China will be weak and consolidating in the short term.