Steady Demand Keeps US SBR Prices Under Check As March Ends

Houston (USA)- SBR prices in the US market remained stable from the previous week amidst regular and stable demand for SBR from the tire manufacturing and automobile industries in the domestic market. Several factors contributed to this, including longer transit times, constrained supply amidst the Baltimore collision, and rising feedstock prices globally for styrene and butadiene. These factors have increased the production cost of SBR. In the week ending March 29th, SBR prices were observed at USD 1900 per MT, CFR USGC in the US market.

Light vehicle sales dipped slightly at the end of the first quarter due to affordability challenges affecting the market. Although the average transaction price (ATP) is now 2.2% lower than a year ago, income growth has not kept pace with ATP growth over the past four years, especially compared to the increase in the average monthly payment for financed vehicles. As a result, demand has shifted towards the non-luxury segment, which contributed to most of the 2.7% year-on-year growth in sales for the first quarter for SBR and the SBR-requiring tire industries.

Hybrid vehicles remain a strong growth area for other major automotive companies such as Ford, with sales outpacing the overall U.S. industry for a significant portion of the past year, significantly keeping the demand for SBR on a continuous pace in the domestic market.

Bridgestone Americas Inc., a subsidiary of Bridgestone Corp., a leading tire and rubber company based in Japan, is revamping logos and brand campaigns for its Tires Plus and Hibdon Tires Plus brands. Headquartered in Nashville, Tennessee, Bridgestone Americas acquired both tire brands in 2006. This update will be the first significant branding change since the acquisition, according to Bridgestone.

The Marine Engineers' Beneficial Association raised concerns about global shipping standards, particularly regarding larger cargo vessels and smaller crews that do not meet US safety levels. Major U.S. ports are nearing capacity and must expand to accommodate expected growth in incoming shipping. It is not uncommon for ships in the Port of LA and the Port of Long Beach to experience occasional power loss or steering issues.

According to ChemAnalyst, SBR prices in the US market are expected to move steadily in the domestic market owing to the continuous rise in feedstock (styrene and butadiene) prices in the global market. Furthermore, the continuous and rising demand for EVs has also pushed automobile and tire manufacturing units to increase production and subsequently increase SBR demand.