Butadiene Rubber Market Prices Drop Sharply

May 26th News

The styrene-butadiene rubber (SBR) market has significantly declined. According to the commodity market analysis system, as of May 25, the price of SBR in the East China market was 15,225 CNY/ton, a decrease of 6.88% from 16,350 CNY/ton at the beginning of the month. After the May Day holiday, the market's restocking enthusiasm faded, and the market lost support from downstream demand. Additionally, with the ongoing U.S.-Iran negotiations and the consolidation of international crude oil prices, the cost pressure on SBR has eased, and the overall market has maintained a weak trend.

In April-May 2026, the price of styrene-butadiene rubber (SBR) showed a one-sided downward trend, falling from about 18,000 CNY/ton to about 15,200 CNY/ton, with a price decrease of over 15% in the period. The price remained below the 10-day and 20-day moving averages, which were in a bearish arrangement, clearly indicating short-term weakness. The market lacked supportive forces, and the downward pressure continued to be released.

The prices of raw materials butadiene and styrene have been fluctuating and weakening, while production enterprises lack sufficient cost support, thereby undermining the upward momentum for styrene-butadiene rubber prices. Meanwhile, the crude oil market has experienced significant volatility, influenced by geopolitical developments and supply-and-demand expectations, further intensifying market uncertainty. According to the commodity price analysis system, as of May 25, the price of butadiene stood at 12,100 CNY per ton, down 8.33% from the beginning-of-month level of 13,200 CNY per ton; as of May 25, the price of styrene was 9,400 CNY per ton, a decrease of 5.24% from the beginning-of-month level of 9,920 CNY per ton.

In May, Yangzi Petrochemical's 100,000 tons/year styrene-butadiene rubber (SBR) plant was fully shut down for maintenance, with some units operating at reduced capacity. The supply pressure for SBR in China was not high.

Supply and Demand: At this stage, the tire industry is in its traditional off-season. In China, end-user replacement demand for tires remains weak, leading to a buildup of finished goods inventory at downstream factories and insufficient willingness among enterprises to resume production. Additionally, influenced by the EU’s anti-dumping policies and geopolitical conflicts, foreign trade orders for tires have declined. As a result, downstream companies are mostly placing small, on-demand orders rather than making bulk purchases, directly weighing down consumption of styrene-butadiene rubber.

Market Outlook: From a fundamental perspective, the Chinese styrene-butadiene rubber market is expected to remain range-bound in the short term, with little likelihood of significant price swings. On the supply side, there are currently no plans for the concentrated resumption of maintenance-related facilities, and inventory pressure remains manageable, thus preventing a sharp decline in rubber prices. However, demand is unlikely to rebound significantly in the short term, which will limit the room for price increases. In the medium to long term, as the end of the summer off-season approaches in mid-to-late June, downstream tire manufacturers are likely to gradually replenish their inventories. Coupled with the stabilization of butadiene prices on the raw-materials side, rubber prices may experience a modest rebound. Overall, the market going forward will need to closely monitor the progress of plant maintenance, trends in crude oil and butadiene prices, and changes in the operating rates of downstream tire manufacturers.

From a technical perspective, in April-May 2026, the price difference of styrene-butadiene rubber in China fell rapidly from a high of +1000 CNY/ton to a negative value, reaching as low as -450 CNY/ton. This corresponds to the price transitioning from overbought conditions to a one-sided decline. Although there was a slight recovery in mid-May, it eventually stabilized around -200 CNY/ton, indicating that the short-term price remains weaker than the moving average. The downward momentum has weakened, but the overall weak trend remains unchanged, with the market still in a bearish phase.