European SBR Prices Steady as August Ends Amid Mixed Tire Market Trends

Antwerp (Belgium)- The SBR price momentum in the European market chose to move steadily with the closure of August impacted by the combination of external and internal factors in the domestic market. SBR composition is inclusive of styrene and butadiene and the price ranges of these elements remained on the positive and stable side of the price range. Apart from the production cost factor impacting the final prices of SBR, the demand sector for the same from the automotive sector as the new and replacement tire remained on the positive side impacting the final price range of SBR in the European market.

In Brussels, the European replacement tire market experienced mixed results in the first half of 2024. Consumer and agricultural tires showed positive trends, while the truck and bus tire segments continued to face declines. Specifically, consumer tire volumes increased by a 2% overall surge in all-season tire sales. Winter tires also saw an 8% increase in volume, while summer tires declined by 4% during the same period, according to data from the European Tyre & Rubber Manufacturers’ Association (ETRMA). Meanwhile, the two-wheeler tire market remained flat, as a 7% increase in second-quarter volumes balanced out a 6% drop in the first quarter.

The truck and bus replacement tire market continued to shrink in the second quarter. Overall, this segment experienced a 5% year-on-year decline, reflecting a 1% decrease in the second quarter. The officials of ETRMA noted that while the first half of 2024 saw growth in all-season consumer tires, the truck tire segment remained weak. The officials attributed the decline in demand and inventory levels to inflationary pressures and geopolitical uncertainties. Agricultural tire sales were bolstered by favorable weather conditions, particularly increased rainfall.

Apart from domestic production, the European market also relies on the import quantity of SBR from the Asian market as well. South Korea, Japan, and Singapore are the countries contributing to the total exporting quantity of SBR. Hence, the freight charges and the transit time also played a crucial role in impacting the final price range of SBR in the domestic market. As per ChemAnalyst, the SBR price is anticipated to witness mixed market sentiments in the second half of 2024 owing to the oscillating prices of the feedstock of SBR combined with the fluctuating demand outlook for the SBR from the tire manufacturing units. Rising crude oil inventories against the soft demand outlook will have a proportional impact on the prices of the overall production cost of SBR.