Domestic SBR Market Shows Strong Unilateral Increase

March 24th, News

In March 2026, the Chinese styrene-butadiene rubber (SBR) market experienced a strong unilateral upward trend, with a significant increase in price levels. According to data monitoring, as of March 24, the benchmark price for SBR in China reached 17,516 CNY/ton, a cumulative increase of 33.29% from the beginning of the month when it was 13,141 CNY/ton.

Middle Eastern geopolitical conflicts continue to escalate, raising concerns about global crude oil supply and keeping international oil prices at high levels, directly driving up the cost of refining and chemical products. As a core raw material for styrene-butadiene rubber, butadiene has seen its price continuously rise due to reduced loads on overseas cracking facilities, increased export orders, and a tightening of spot circulation in China. Coupled with the simultaneous increase in the cost of styrene, the cost pressure on styrene-butadiene rubber producers has surged. Some companies that fully source their raw materials externally have fallen into losses and have been forced to significantly raise their factory prices, becoming the main driver of the price increase. According to the commodity market analysis system, as of March 24, the price of butadiene was 16,766 CNY/ton, an increase of 67.78% from 9,993 CNY/ton at the beginning of the month; as of March 24, the price of styrene was 10,590 CNY/ton, an increase of 38.69% from 7,636 CNY/ton at the beginning of the month.

Within the month, some styrene-butadiene rubber (SBR) manufacturers in China have reduced their production loads, and some companies have plans for maintenance later on. The overall operating rate of the industry is low, leading to a continuous decrease in available supply in the market. At the same time, the inventory of the producers remains low, and suppliers have successively raised their prices significantly, further supporting the upward trend of market prices.

Supply and demand: Since March, the downstream tire production has gradually increased, providing support for the demand in the styrene-butadiene rubber market. As of March 19, the semi-steel tire production rate of tire companies in China reached around 78%; the all-steel tire production rate of tire companies in Shandong region reached about 70%.

Market Outlook: In the short term, the styrene-butadiene rubber market is expected to remain in a high-range trading pattern with limited downside risk. On the cost side, geopolitical conflicts are unlikely to ease significantly in the near term, meaning crude oil and butadiene prices will likely rise rather than fall, ensuring strong cost support. On the supply side, scheduled maintenance at some plants continues, keeping the market supply tight and maintaining the current bottom support for prices.