Tokyo (Japan)- The Asian market for SBR continues to demonstrate stability, with minimal fluctuations in market prices and dynamics. Key sectors such as automotive, insulated electronic equipment, and footwear, which are significant consumers of SBR globally, have experienced varied sales and demand trends across different regions. Notably, Asia stands out as a major producer and key player in the global SBR market, with countries like Japan, South Korea, Thailand, and Singapore leading in manufacturing and exports. Inquiries from both domestic and international consumers have been steady yet gradual. Despite high butadiene costs stabilizing, a slight decline in styrene prices continues to support SBR pricing. Minor reductions in downstream tire production have provided limited support for steady SBR demand. Overall, SBR production has remained largely stable, with company inventories at moderate levels.

In the week ending May 24th, SBR prices were observed at USD 1700 per MT, FOB Tokyo in the Japanese market.

Japan recently announced its collaboration with the Association of Southeast Asian Nations (ASEAN) to develop a strategy for regional auto production. This move is seen as a countermeasure against China's growing dominance in the electric vehicle (EV) sector. Historically, Japanese car sales have dominated the Southeast Asian market, but the rapid green transformation in the region is changing the landscape. Consequently, tire manufacturers are facing a moderate demand outlook, prompting them to maintain stable SBR prices. Likewise, early trade data from South Korea indicates a robust increase in exports, suggesting a potential boost in the country's economic growth.

In Indonesia, SBR prices have remained stable compared to the previous week, supported by sufficient inventories that meet both domestic and international demand. According to auto executives, sales of electric cars and tires in Indonesia surged last month following the government's introduction of tax incentives, signaling that EV adoption is gaining momentum in Southeast Asia's largest economy. Indonesia reduced the value-added tax (VAT) on electric cars from 11% to just 1%, provided they are manufactured with at least 40% local content. SBR production has generally remained stable, with company inventories at moderate levels.

Additionally, Indonesia has amended an import regulation to expedite the release of thousands of containers stuck at its ports, addressing business complaints that the trade restriction was hindering operations. Meanwhile, downstream buyers in sectors like tires, synthetic rubber, and electronics remain cautious about purchasing high-priced goods, resulting in a stable, moderate, and subdued performance in the SBR market. According to ChemAnalyst, SBR prices are expected to move steadily with a positive price trend, given a better demand outlook from the tire and automotive industries.