US Government's Pro-Automotive Policies Influence SBR Price Trends

USA - The Styrene Butadiene Rubber (SBR) prices in the US market remain persistent in following the northwards price momentum owing to the inclined sales rate of automotive and tire manufacturing units. Moreover, automotive sales in the country arose as the US government contributed equally to governing the overall market dynamics of SBR. The major impact of inflation and economic conditions could be witnessed easily in rent, healthcare, and cars. As per industry (automotive, tire manufacturing units, and synthetic rubber) players, new vehicle deals in the US expanded because of solid interest in individual transportation and further developed seller inventories, significantly impacting SBR market dynamics. Towards the end of the second quarter of 2023, prices for SBR settled at USD 2270 per MT, CFR USGC in the US market.

After increasing discounts and other incentives to boost sales in the face of economic uncertainty and rising competition, the automotive industries such as (Tesla and BMW) are expected to report record vehicle deliveries in the upcoming quarter. Proprietors of electric vehicles additionally benefit from fuel reserve funds and lower upkeep costs. Electric vehicles do not need oil changes, and power is, for the most part, less expensive per mile than fuel, making it a better option for consumers leading to a higher productivity rate of SBR-based tires. Major automotive players had the option to beat the impact of higher financing costs, which raise regularly scheduled installments for individuals who purchase vehicles using a credit card.

According to the major automotive and synthetic rubber industry players, the deal of most significant vehicle indicates presumably rose pointedly in the second quarter of 2023. Production supply issues have improved, making it simpler for carmakers to get the parts they need and for purchasers to find the vehicles they need. In tire manufacturing units, Sailun Tire Americas (STA) sees an opportunity in the replacement market. Sailun appeared its ERange electric vehicle tire portfolio has been able to set the deal. From the point of view of a different class of consumers, the demand for used cars and the consecutive sales rate remained at a moderate pace. As a ripple effect, the demand for SBR remained on the inclined side in the US market.

As per ChemAnalyst, the market dynamics of SBR may change in the upcoming quarter due to the oversupply of SBR in the domestic market amidst the narrowed gap between demand and supply chain. Actions taken by the US government in favor of automotive manufacturing units and the consumers, such as tax credit subsidies, contributed equally to governing the general SBR price dynamics.