The Asian Styrene Butadiene Rubber (SBR) market remained stable towards the end of March. The previous weeks of March have seen a slight decline in the prices, driven by fluctuating feedstock (Styrene and Butadiene) prices and shifting in supply-demand dynamics. The key facets behind these feedstock price movements are the continued decline in benzene prices and weakening demand for butadiene, both of which directly impact the SBR production cost. Asia is one of the major producers and exporters of SBR in the global market, proportionately governing the final benchmark price trend in the international market as well.

The critical precursor in styrene production is benzene. The prices of the same have also been on a downward trend, influenced by increased imports and rising maintenance activities in the downstream industries. The average downstream demand for gas has kept benzene prices under pressure contributing to a softer market outlook for styrene as well.

Styrene production has remained stable, but the maintenance shutdowns at several plants have raised the expectations of tighter supply. Despite this, high inventory levels have limited the ability to increase overall production. Butadiene, the other critical component of

SBR has faced downward pressure on the price dynamics due to sluggish demand from the tire and automotive industries. Ongoing challenges in the automotive sectors, particularly in Southeast Asia, have slowed the demand for butadiene, consequently impacting the price value chain of SBR as well. The weak recovery in automotive production, combined with higher debts and other economic contributors in countries such as Thailand has kept the demand for SBR subdued. Thailand is also one of the major exporters of SBR in the Asian market. 

Despite these challenges, some optimism for tire industries remained in the Asian market such as South Korea. The Kumho Petrochemical has seen a positive stock performance, driven by the expectations of better profits gained in the first quarter of 2025. Analysts attribute this to improved production efficiency, smooth operations, and rising demand and prices of synthetic rubber. This helped in easing some of the pressure from the declining feedstock prices. 

As per ChemAnalyst, the SBR market dynamics are further expected to remain average with normal operations and sufficient inventories. The SBR market will depend on the supply of feedstock (styrene and butadiene) in the domestic market. While downstream demand from tire industries has shown signs of recovery, the market is constrained by inventories and broader economic uncertainty.