Optimistic Change in Momentum in Styrene Butadiene Rubber Prices Post Spring Season Holidays in China

After having sluggish start to 2022, Styrene Butadiene Rubber (SBR) market has changed momentum after lunar new year holidays in China. Styrene Butadiene Rubber prices have increased in last couple of weeks owing to rebound in demand fundamentals in the market.

Styrene Butadiene Rubber 1502 prices have increased to USD 1993 per MT on FOB basis in mid-February. Market has observed optimistic buying sentiment where market participants have reported increased queries from downstream buyers.

Meanwhile, upstream Styrene and Butadiene prices have also observed an uptrend rally owing to increased volatility in refinery products. This has increased the cost pressure over downstream SBR market. Manufacturers have been witnessing rise in overall cost of production which culminated in spike in prices of the material. Styrene prices were assessed on 2^nd week of February 2022 and were placed at USD 1255 per MT on CFR basis while Butadiene prices were measured at USD 945 per MT.

Styrene Butadiene Rubber market observed significant drop in prices in Q4 stemming from declining demand sentiment and ample supply availability in the market. Destocking activities further contributed towards deteriorating pricing dynamics in the last quarter of 2021.

As per ChemAnalyst, “Styrene Butadiene Rubber market is likely to remain bullish in the coming months as demand for elastomers is expected to gain owing to increased rubber demand from tire industry. Demand from both Original equipment tires and replacement tires is expected to climb as tire industry look to seize upon the upcoming summer driving season.”