In mid-February, Polybutadiene Rubber (PBR) prices in both the European and Asian markets experienced notable increases, driven by tightening supply conditions and stronger procurement activity. In Europe, supply constraints due to production disruptions and limited export availability, coupled with steady demand from the Tire sector, supported the upward pricing momentum. Meanwhile, in Japan, a rise in Butadiene prices and strategic cost-passing measures by manufacturers contributed to higher PBR prices, despite some challenges in supply and production. Both markets displayed resilience, with demand remaining steady in key sectors, fostering a stable environment for PBR price increases.

In mid-February, PBR prices in the European market marked a notable rise, driven by tightening supply conditions and increased procurement activity. Despite fluctuations in feedstock costs, market participants faced constrained inventories due to production disruptions and limited export availability. Economic activity in Europe showed signs of a modest recovery, with a slight uptick in manufacturing output, supporting demand. While the Automobile sector remained sluggish, steady orders from the Tire sector provided price support to PBR. As a result, upward pricing momentum was observed in the PBR market.

PBR demand in the European market remained moderate, as subdued activity in the Automobile sector constrained overall consumption. However, the Tire sector showed resilience, supporting PBR demand with a more positive outlook. Market participants remain cautiously optimistic, anticipating a gradual recovery in key sectors. According to data from the Germany Federal Motor Vehicle Office (KBA), new passenger car registrations in January 2025 totalled 207,640 units, marking a 7.6% month-on-month decline and a 2.8% drop year-on-year. Meanwhile, the Tyre and Rubber Manufacturers’ Association (ETRMA) reported positive replacement tire sales in Q4 2024 across all product lines, largely due to weak Q4 2023 performance. While consumer tire volumes improved in 2024, particularly in the All-Seasons segment, truck tire volumes remained slightly negative. Both segments remain below pre-pandemic levels, with consumer tires down 3.5% and truck tires down 10.3% from 2019. Truck tire volumes continue to be affected by non-pool growth despite antidumping duties, while agricultural tire sales benefited from rainy weather conditions.

As of mid-February, PBR prices in the Asian market, particularly Japan marked a notable rise driven by a 7.7% m-o-m rise in Butadiene prices and stronger cost-passing measures by manufacturers. Zeon Corporation reported lower sales volumes for both specialty and general-purpose synthetic rubbers due to shipment adjustments following maintenance at its Tokuyama and Takaoka plants. Despite reduced shipments, the company raised profitability by transferring higher raw material costs to buyers. Additionally, steady demand from the automotive and tire sectors, along with cautious inventory management by market participants, reinforced the upward PBR price trend.

As per ChemAnalyst's anticipation, PBR prices are expected to follow a bullish trend in the upcoming sessions. This projected increase is primarily attributed to an anticipated rise in Butadiene prices, coupled with manufacturers passing on higher costs. These factors are set to play a crucial role in driving PBR prices upward.