For the Quarter Ending September 2024
North America
In Q3 2024, the Styrene Butadiene Rubber (SBR) market in North America experienced a notable uptrend in prices, driven by several significant factors. The 14% increase from the same quarter last year can be attributed to a combination of rising demand for SBR in various industries, including automotive and electronics, and fluctuations in feedstock prices such as styrene and butadiene.
The growing popularity of crossover SUVs and pickup trucks has helped U.S. automakers achieve stronger sales in recent years, as consumers valued the versatility these vehicles provided. Several factors have contributed to the increase in both the availability of used electric vehicles (EVs) and the number of interested buyers. SBR demand had risen, along with increasing freight charges.
The industry had also felt the impact of reduced leasing activity from three years prior, resulting in fewer lessees returning to dealerships to purchase or lease new vehicles. While top-line sales figures appeared strong, they were somewhat inflated by transactions that had been delayed from June due to software outages that had prevented many dealers from processing sales the previous month. In the USA, where the most substantial price changes were observed, the SBR pricing environment has been predominantly positive. The overall trends in the USA point towards a resilient SBR market, supported by consistent demand from the automotive sector and other key industries.
APAC
The third quarter of 2024 for Styrene Butadiene Rubber (SBR) in the APAC region has been marked by stability in prices. Various factors have influenced this market equilibrium. The consistent demand from the automotive, tire, and electronics industries has played a crucial role in maintaining stable prices. Additionally, the balance in feedstock costs, particularly styrene and butadiene, has contributed to the overall price stability. Limited SBR production levels have also helped in keeping supply-side pressures in check. Shifting the focus to Japan, the market has experienced the most significant price changes. Demand for the commodity from the automotive and electronics industries was affected when, in June 2024, new vehicle sales in Japan fell by 5% in the same month the previous year, according to the Japan Automobile Manufacturers Association. The market had been in decline since the end of the prior year after Daihatsu was ordered to halt all production following an investigation that uncovered decades of falsified safety test results. This scandal also affected sales of models shared with other brands. In early May, Daihatsu was allowed to fully resume production, with expectations that sales would recover in the latter half of the year as the companies addressed their order backlogs.
Europe
In Q3 2024, Styrene Butadiene Rubber (SBR) prices in the European region have experienced a notable increase, driven by several significant factors. The market has seen a consistent upward trend in prices, influenced by a combination of factors such as heightened demand, supply chain disruptions, and rising feedstock costs. This quarter has marked an 8% increase compared to the same period last year, reflecting the overall positive trajectory in SBR pricing. The quarter-on-quarter change of 11% further underscores the notable price adjustments within the market. Additionally, participants in the SBR tire market observed that Europe's competitiveness had been undermined by rising energy and transportation costs, along with increasing wages, which led to the closure of several SBR manufacturing plants in Germany and reduced operations in Poland. Nokian Tyres reported a strong performance in the second quarter of 2024, with net sales increasing by 11.2%, driven by improved tire availability in Central Europe. Notably, the price comparison between the first and second half of the quarter revealed a 3% increase, indicating a steady rise in SBR prices over the period. France, in particular, has witnessed the most significant price changes, with a stable yet positive pricing environment throughout the quarter.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Styrene Butadiene Rubber (SBR) market experienced a notable increase in prices, influenced by several key factors. A recovery in demand from tire manufacturing and automotive sectors significantly impacted market dynamics. The robust prices of primary feedstocks, styrene and butadiene, further compounded the upward trend, reflecting heightened production costs. Additionally, geopolitical tensions and increased freight charges strained supply chains, contributing to elevated delivery prices. The supply-demand balance in the market leaned towards tighter availability, exacerbating the price surge.
In the USA, SBR prices saw the most pronounced changes. The overall trend for the quarter was one of consistent price escalation, driven by stable yet firm demand from the automotive and tire sectors. Seasonal factors, including increased vehicle production and sales in spring, bolstered demand for SBR, thereby augmenting prices. The correlation between heightened summer vehicle usage and SBR demand was evident, reinforcing the seasonal uptick.
Comparing year-on-year data, SBR prices in Q2 2024 were down by 6% from the same quarter last year, despite a 10% increase from the previous quarter in 2024, underscoring a significant quarterly rebound. Conclusively, the latest quarter-ending price for SBR 1502 CFR USGC in the USA was recorded at USD 2103/MT, indicating a positive pricing environment marked by an overall upward trajectory.
APAC
In Q2 2024, the Styrene Butadiene Rubber (SBR) market in the APAC region experienced a significant upward pricing trend, driven by several critical factors. Primary influences included increased feedstock costs, particularly butadiene and styrene, coupled with stabilizing naphtha prices, which together pushed production expenses higher. Additionally, rising maritime cargo costs due to ongoing supply chain disruptions and elevated shipping rates compounded overall cost structures. The global rebound in the automotive and tire manufacturing sectors further amplified demand, exerting upward pressure on SBR prices across the region. Japan witnessed the most substantial price changes within the APAC region, underscoring a robust upward trend. Seasonal demand fluctuations also played a role, with the first half of the quarter demonstrating a 9% price increase over the second half, attributable to heightened procurement activities and inventory build-ups in anticipation of stronger market performance. By the end of the quarter, the price of Styrene Butadiene Rubber 1502 FOB Tokyo settled at USD 1863/MT, epitomizing the consistent upward pricing sentiment. Despite varied economic challenges, the SBR market maintained a positive pricing environment, driven by synergistic factors of increased production costs, strong market demand, and persistent supply chain constraints. This confluence of elements highlighted the resilience and robust demand profiles characterizing the APAC SBR market in Q2 2024.
Europe
In Q2 2024, the Styrene Butadiene Rubber (SBR) market in Europe experienced substantial fluctuations, primarily driven by escalating production costs and shipping expenses. The increasing prices of key feedstocks, styrene and butadiene significantly impacted overall SBR pricing dynamics. The strategic location of production facilities in Serbia and the considerable rise in shipping costs from China and Southeast Asia to Europe exacerbated these price changes. Additionally, supply chain disruptions, including strikes at major European ports, contributed to higher costs and prolonged delivery times. Germany witnessed the most pronounced price changes in the region. The German market showed a bullish trend in SBR pricing due to strong demand from the automotive and tire manufacturing sectors. Seasonal factors also played a role, with increased tire production during peak summer months driving up demand. Additionally, a 4% price increase was noted between the first and second halves of the quarter, underscoring the upward momentum. The latest quarter-ending price for SBR 1502 FD Wuppertal in Germany stood at USD 1820/MT, reflecting the overall positive pricing environment. The market sentiment for Q2 2024 was increasingly positive, with a consistent rise in prices driven by heightened production costs, robust demand, and constrained supply chains. This quarter underscored the resilience of the SBR market amidst economic pressures, highlighting the supply-demand dynamics that continued to shape the pricing landscape in Europe.
For the Quarter Ending March 2024
North America
In Q1 2024, the US market for Styrene Butadiene Rubber (SBR) experienced the upward momentum due to several factors influencing both supply and demand dynamics. Key drivers included increased production costs and higher delivery charges at domestic ports, affecting overall pricing strategies. The automotive sector, particularly the rise in Battery Electric Vehicles (BEVs) significantly impacted SBR demand. These vehicles' market introductions are expected to boost SBR usage due to their specific material requirements for tires and other components.
Additionally, geopolitical tensions and changes in trade policies, such as proposed tariffs on Chinese vehicle imports and adjustments in trade routes due to security concerns in the Red Sea, further complicated the supply landscape. These factors led to shifts in import patterns and supply chain revaluations, pushing companies to seek more reliable trade partners and adjust their logistical strategies to mitigate rising freight costs.
Moreover, the recovery signs in consumer demand for electric vehicles, despite not meeting previous expectations, suggest a gradual but ongoing transition towards more sustainable transportation options, which supports a steady demand for SBR. Market stability was periodically challenged by fluctuations in raw material costs, particularly butadiene and styrene, essential for SBR production, reflecting the broader economic conditions affecting the chemical and rubber industries. Overall, these elements combined to shape the SBR pricing landscape, highlighting the interplay between industrial demand, supply chain adjustments, and regulatory changes in the US market.
APAC
In Q1 2024, the pricing trends of Styrene Butadiene Rubber (SBR) across Asian market were primarily influenced by a resurgence in demand from the automotive and tire industries, bolstered by the increasing adoption of electric vehicles and a general recovery in vehicle sales. This demand shift was particularly notable in markets actively promoting EVs, such as Thailand and China, where governmental incentives are fostering growth in this sector. The cost of feedstock materials like styrene and butadiene, crucial for SBR production, also significantly impacted prices. These costs were subject to fluctuations driven by volatile crude oil prices and geopolitical tensions that disrupted supply chains, leading to periodic spikes in SBR prices.
Additionally, the operational rates at SBR production facilities were adjusted in response to the evolving balance of supply and demand, affecting price levels. Seasonal and festive periods further influenced these dynamics by temporarily dampening production activities or spurring demand surges. Logistics also played a critical role, with challenges such as container shortages and heightened freight costs due to geopolitical shifts affecting the overall supply chain and pricing structure. These elements combined to create a complex pricing environment for SBR, characterized by moderate to high price consolidation influenced by regional market conditions, strategic responses to supply chain challenges, and the broader economic landscape influencing industrial activities. As a result, SBR markets experienced varied price adjustments, reflecting both global economic trends and localized industrial strategies.
Europe
In Q1 2024, the European market for Styrene Butadiene Rubber (SBR) experienced a complex interplay of factors influencing pricing and market dynamics, maintaining stability despite multiple pressures. The European SBR market was notably impacted by geopolitical tensions, including ongoing conflicts affecting trade routes and increasing freight costs, particularly due to disruptions in the Red Sea region. This contributed to a rise in production and shipping costs, as manufacturers grappled with higher prices for key feedstocks like styrene and butadiene. Furthermore, the market saw an evolution in demand patterns, primarily driven by the automotive industry, where a shift towards electric vehicles (EVs) continued to influence rubber requirements. However, the transition faced hurdles such as consumer hesitation towards EV adoption, influenced by economic uncertainties and the lack of a strong value proposition compared to traditional vehicles. Despite these challenges, SBR suppliers managed to keep prices relatively stable, supported by strategic stock management and moderate demand from tire and automotive sectors. Additionally, environmental regulations and a growing emphasis on sustainable materials continued to play a crucial role in shaping market strategies, pushing for adaptations in supply chains and production processes to accommodate a greener economic landscape. Overall, the market's response to these myriad factors was a careful balance between maintaining supply chain integrity, adjusting to new consumer trends in the automotive industry, and navigating the economic pressures from increased costs and geopolitical risks.
For the Quarter Ending December 2023
North America
During Q4 2023, the North American Styrene Butadiene Rubber (SBR) prices moved southwards and experienced moderate demand with slight price fluctuations influenced by various factors. The automobile industry's labour strike had the potential to impact vehicle inventories, consequently affecting SBR demand.
The reduction in raw material prices, including styrene and butadiene, contributed to an overall decrease in SBR production costs. Cargo shippers began prioritizing secondary ports due to limited space at primary US ports. Anticipated feedstock price increases and limited inventories for domestic demand suggested potential price hikes in the upcoming quarter. The trend for the US market in the current quarter was bearish, characterized by moderate supply and demand.
The price percentage change from the same quarter the previous year was -31%, while the comparison from the previous quarter was -19%. The price percentage difference between the first and second half of the quarter was -6%. The quarter-ending price of SBR 1502 CFR USGC in the USA was USD 1784/MT.
APAC
In the APAC region, the Styrene Butadiene Rubber (SBR) market observed moderate price trends during the last quarter of 2023, with moderate demand. Challenges in sustaining momentum for sports utility vehicles resulted in a deceleration in the passenger vehicle sector, impacting the demand outlook for SBR. The stable prices of feedstock styrene and butadiene influenced the overall production costs and delivery prices of the commodity. Daihatsu, a subsidiary of Toyota Motor Corp in Japan, temporarily ceased production at all four of its domestic factories as authorities from the transport ministry investigated irregular safety certification tests. This move to suspend operations occurred a week after Daihatsu Motor Co. announced a halt to vehicle shipments, both domestically and internationally, following the revelation of improper testing practices. Analysing the trend, seasonality, and correlation price percentage for Japan in the past quarter, there was a notable decline of -12% from the previous quarter, with a price percentage comparison of -2% between the first and second half of the quarter. The percentage change from the same quarter of the previous year stood at -18%. The final price of SBR 1502 FOB Tokyo in Japan for the past quarter was USD 1534/MT.
Europe
In Europe, the Styrene Butadiene Rubber (SBR) market during Q4 2023 was characterized by a bearish situation, marked by subdued demand and moderate supply. As the quarter concluded, there were indications of lower production rates and a pessimistic demand outlook. SBR retailers and manufacturers maintained their prices unchanged amidst the negative market trend that had initiated in the same quarter of the previous year. The decline in upstream (crude oil) and midstream (styrene, butadiene) components had a notable impact on the overall price range of SBR. Data released by the European Tyre and Rubber Manufacturers’ Association (ETRMA) indicated a substantial decrease in all segments, confirming the prevailing negative trend in the market. Despite intensive lobbying efforts by prominent car manufacturers for temporary relief from tariffs, the proposed delay in the implementation of tariffs did not provide sufficient stimulus to boost the market. Germany witnessed the most significant price changes, experiencing a weekly price change of -2.5% and a price percentage comparison of -6% between the first and second half of the quarter. The percentage change from the current quarter to the previous one was -26%, and the percentage change from the same quarter of the previous year was -40%. The latest price of SBR 1502 FD Wuppertal in Germany for the past quarter was USD 1560/MT.
