July 21st News
In July 2026, the price of styrene-butadiene rubber in China increased due to cost-driven factors. According to the commodity market analysis system, as of July 21, the price of styrene-butadiene rubber in the East China market was 13,900 CNY/ton, an increase of 12.47% from 12,358 CNY/ton at the beginning of the month. Sinopec continuously raised the factory price by a cumulative amount of 1,200 CNY/ton, resulting in a market characterized by strong cost support and weak demand constraints.
The tense situation in the Middle East has pushed up international crude oil prices, and the prices of upstream butadiene and styrene have strengthened in tandem, continuously increasing the production costs of styrene-butadiene rubber. In mid-month, the strengthening of crude oil, coupled with multiple plant maintenance and port inventory reductions, led refineries to continuously raise the factory price of butadiene. The downstream rubber industry followed with rigid demand, causing prices to rise sharply. The increase in pure benzene costs, low industry operating rates, and the diversion of overseas supplies supported the rise in styrene prices. According to the commodity market analysis system, as of July 21, the price of butadiene was 10,533 CNY/ton, an 18.80% increase from 8,866 CNY/ton at the beginning of the month; as of July 21, the price of styrene was 9,080 CNY/ton, a 23.87% increase from 7,330 CNY/ton at the beginning of the month.
Demand continues to limit the upside. July is traditionally a slow season for tires, with many factories scheduling short-term maintenance. Finished product inventories at the terminal are high, and there is a clear resistance to high-priced raw materials, with purchases maintained only at the level of rigid demand. Market transactions lack volume, and trading in the high-price range is sluggish, gradually slowing the pace of increases. By the end of the week, there were signs of a slight correction in the market. As of July 16, the operating rate of semi-steel tire production in China was 60%; the operating load of all-steel tire production in Shandong tire enterprises was 62%.
From March to April, the styrene-butadiene rubber market experienced a significant price surge, with short-term moving averages arranged in a bullish configuration. From April to June, the spot price remained under downward pressure from various moving average periods. In July, after hitting a bottom, the styrene-butadiene rubber spot price broke above the 10-day moving average, and the short-term moving averages are expected to turn upward, forming a golden cross—a bullish signal in the short term. However, the 20-day, 30-day, and 60-day moving averages are still trending downward, indicating that the medium- to long-term bearish trend has not yet reversed.
Fundamentally, in the short term, styrene-butadiene rubber (SBR) will maintain a high and wide fluctuation. The high operation of crude oil, butadiene, and styrene forms a strong cost support; however, from July to September, tires are in the traditional off-season, with low factory operating rates and high finished goods inventory. Downstream resistance to high prices limits the upward potential of SBR, and there is pressure for a price correction in the high-price range. In September, the "Golden September" peak season is expected to bring a phase of strengthening, as tire restocking drives demand recovery, potentially leading to a slight increase in prices.
