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.
For the Quarter Ending September 2023
North America
In the North American region, the market sentiments of styrene-Butadiene Rubber remained in the retarding phase throughout the third quarter of 2023 as the competition from the Chinese market has had an impact on US Synthetic Butadiene Rubber (SBR) prices. Buyers struggled to keep up with the availability of all-electric vehicles, resulting in excess inventory, and the reduction in SBR import prices at domestic ports from Asian suppliers further affected the overall SBR market dynamics. On the West Coast of Canada, a tentative labor contract agreement between a dock workers' union and port employers came to settlement. The decrease in new orders was due to weak demand from both domestic and international sources. Companies responded to the challenging sales environment by reducing their material purchases, leading to a significant decrease in inventory levels. Despite the drop in pending work resulting from the decline in new orders, Titan International Inc. saw a significant decline in earnings for both the quarter and the first half of the year. This decline was primarily attributed to reduced sales, causing management to anticipate lower annual results compared to fiscal year 2022. Notably, approximately 12,700 members of the United Auto Workers (UAW) initiated a strike at three separate factories owned by Ford, Stellantis, and GM. This marks a historic moment as it's the first time the UAW has gone on strike simultaneously against all three major automakers. Butadiene (major feedstock) prices remained on the lower side despite the continuous rise in crude oil and naphtha prices in the regional market. Price quotations of SBR in the third quarter were observed at USD 1982 per MT, CFR USGC.
Asia Pacific
SBR price dynamics in the Asian market continued to rise due to increased demand from the global automotive industry. China's auto sector expanded globally, with a remarkable 81% year-on-year increase in exports to 1.76 million vehicles during the first five months of 2023, as reported by the China Association of Automobile Manufacturers (CAAM). Additionally, higher selling prices were influenced by supply shortages and elevated feedstock (styrene and butadiene) prices within the Chinese market. The key components of the SBR industry supply chain have maintained stable and uninterrupted operations. Evonik Industries AG, headquartered in Essen, Germany, expanded its rubber silane facility and initiated production at Evonik Lanxing (Rizhao) Chemical Industrial Co., Ltd. A significant factor contributing to the price increase was the supply shortage caused by the maintenance shutdown of the styrene plant in China (Sinopec Hainan Refining and Chemical) and the butadiene production plant (Shanghai SECCO Petrochemical), which had affected the overall availability of SBR for producers. Additionally, global crude oil prices have consistently risen, putting pressure on the costs of light naphtha and heavy aromatic naphtha, as well as their derivatives. To stimulate consumer spending, the Chinese government implemented measures such as subsidies for new-energy vehicles and tax incentives for car purchases, consequently impacting the SBR price dynamics in the Asian market. Price quotations of SBR in the third quarter were observed at USD 1773 per MT, CFR Qingdao.
Europe
German SBR prices have experienced a decline due to moderate demand from end-users, specifically automotive and tire manufacturing units, in Q3 of 2023. Butadiene, a key component in SBR production, has seen somewhat lower prices in the past month, impacting the overall dynamics of the SBR market. Germany has witnessed a continuous increase in the sales of fully electric vehicles, driven by strong interest in EV-exclusive brands like Polestar, Tesla, and MG Motor. In July, the registrations of battery-electric cars in Germany saw a significant 69% surge. This growth has led electric drivetrains to capture a substantial 20% market share, as reported by data from the German Motor Transport Authority (KBA). Suppliers have kept prices relatively competitive to attract more buyers in the coming weeks. However, global crude oil prices have consistently risen in the first half of Q3, which has increased cost pressures on light naphtha, heavy aromatic naphtha, and their derivatives. Furthermore, demand from the replacement tire segment has been lackluster, according to ETRMA data. There is an expectation of a roughly 2% reduction in sales volumes in the tire replacement sector, primarily due to weaker demand in Europe and overseas markets. As a result, industry experts are revising their sales forecasts for the upcoming quarters, leading to a decrease in overall SBR prices. Additionally, the German automotive supplier Continental has adjusted its outlook for the year, citing a decrease in demand for replacement tires in North American and European markets, as reported by market participants. The production cost of SBR has also been influenced by the prices of its feedstock, particularly butadiene, in the regional market. Price quotations of SBR in the third quarter were observed at USD 1844 per MT, FD Wuppertal.
For the Quarter Ending June 2023
North America
In the North American region, the market sentiments of Styrene-Butadiene Rubber remained in the inclining phase throughout the second quarter of 2023. The downstream (automotive sector) in the North American market remained on a higher edge, accompanied by the inclining feedstock (styrene and butadiene) prices. Importing prices remained on the lower edge as suppliers did not conquer frequent inquiries about the product. Meanwhile, the supply chain pressure was reduced to some extent. In the second half of Q1, the US bank crisis hampered the demand and supply chain ratio, becoming one of the facets governing the declining prices of SBR in the regional market. Any automakers have announced higher new vehicle deals in the US as higher production volumes recharge vendor inventories; however, those gains are being hampered by high retail costs and rising ware costs. End-use producing units (tires and car) area had more than an adequate measure of feedstock to take care of the homegrown interest, relatively balancing out the costs of SBR in the US market. A slope in cargo charges from South Korea to the US had slanted by 14% in the earlier month, relatively affecting the general market elements of SBR in the US market. Providers kept the costs on the upper edge to achieve more benefits and take care of the interest for the item with adequate inventories to take care of the regional interest.
Asia Pacific
In the first quarter of 2023, Styrene-Butadiene Rubber (SBR) market dynamics inclined on account of stable demand outlook from downstream (automotive and Rubber industrial). The rise in costs of one of the feedstocks (styrene) was seen in the domestic market, exhibiting its corresponding effect on the creation cost and, by and large, market elements of SBR in the South Korean market. Besides, the resuscitating car and elastic enterprises had raised interest in the item. As per the Korea Auto Merchants and Wholesalers Affiliation (KAIDA), deals of imported light traveler vehicles in South Korea diminished, prompting ascend in deals of homegrown market feelings. Homegrown producers took benefit of the equivalent of partaking in the rising contest and expanded deals interest for SBR in the South Korean market. In the Chinese market, the SBR market dynamics remained on the softer side. The purchasers were more wary about putting in higher requests in the homegrown market because of adequate accessibility of the item with end-use fabricating units. As per the China Relationship of Car Makers (CAAM), the interest declined as the battery material costs expected for the electric vehicle fabricating units have weakened in the homegrown market. Additionally, Sinopec Yangzi Petrochemical is one of the major SBR-delivering units and was under upkeep closure.
Europe
European SBR prices inclined slightly throughout the second quarter on account of inclined demand and fluctuating feedstock prices. The makers and providers kept the costs on the upper edge to draw in additional purchasers amid the moderate interest viewpoint for the item. The modern exercises are reiving, and the providers saw better market situations in the German market. As per the European Automobile Manufacturing Association (ACEA) and KBA government transport authority, the German vehicle market expanded. German SBR makers and tire producers got expanded orders in the midst of the better deals rate. The rising interest in electric vehicles became one of the administering factors that drove the SBR costs toward the north course. In Berlin, the National Development and Reform Commission (NDRC) and BMW and Mercedes-Benz marked explanations of expectations to expand their partnership in the auto industry. In addition, the interest in the item from electric vehicle-producing units likewise stayed moderate, displaying its immediate effect on the general market elements of SBR in Germany.
For the Quarter Ending March 2023
North America
In the North American region, the market sentiments of Styrene-Butadiene Rubber remained on the declining phase throughout the first quarter of 2023. The downstream (automotive sector) in the North American market remained weak, accompanied by declining feedstock (styrene and butadiene) prices. Importing prices remained on the lower edge as suppliers did not conquer frequent inquiries about the product. Meanwhile, the supply chain pressure was reduced to some extent. In the second half of Q1, the US bank crisis hampered the demand and supply chain ratio, becoming one of the facets for governing the declining prices of SBR in the regional market.
Asia Pacific
In the first quarter of 2023, Styrene-Butadiene Rubber (SBR) market dynamics inclined on account of stable demand outlook from downstream (automotive and rubber industrial). According to South Korean government official figures, domestic car sales increased in Q1 due to improved supply and bigger stocks; however, the demand strength for SBR remained under pressure. Moreover, the market's import volume of commercial cars and their components has decreased. Furthermore, one of the feedstock costs (styrene and butadiene) continued to fall in the Asia-Pacific market, impacting the entire production cost. The export quantity had declined, as stated by the major exporter (South Korea), consequently showcasing its impact on SBR final prices. Towards the quarter's end, SBR prices were observed at USD 1566 per MT, FOB Seoul.
Europe
The overall market trend of Styrene Butadiene Rubber (SBR) moved southwards on the back of declining demand for the product from the automotive and rubber sectors. The European market witnessed a mixed demand outlook in different countries as Spain and France witnessed inclined sales of automobiles, whereas Germany witnessed a decline in the demand for the product. Meanwhile, it has been observed that Russian synthetic rubber imports into the EU have been declining substantially since the start of the Ukraine war. Despite a small uptick in manufacturing and purchasing activity, Germany's overall output rate was unable to exceed the expected bar for SBR sales. Most electric vehicle purchasers relied on government subsidies, and the country's supplies were depleted. Furthermore, the projected economic crisis had an impact on final expenses. As a result, the rubber industries suffered, slowing demand and putting pressure on suppliers to maintain consistent prices. Towards the quarter's end, SBR prices were observed at USD 2104 per MT, FD Wuppertal.
For the Quarter Ending December 2022
North America
In the North American region, the market sentiments of Styrene-Butadiene Rubber fluctuated throughout the quarter on account of the slow demand outlook. Q4 of 2022 starting witnessed stagnancy accompanied by the feedstock (Styrene and Butadiene) prices. Official data showed an incline in automotive toward mid-quarter sales in the regional market; as a ripple effect, the operational rate elevated, keeping the prices stable. Towards the quarter's end, a drop in prices occurred as the US market slowed production due to storm Elliot and Christmas holidays. The demand from automotive tire sectors also declined proportionally, impacting the final prices of SBR in the North American region. Towards the end of Q4, the prices of Styrene Butadiene Rubber were USD 2676 per MT, CFR USG (USA).
Asia Pacific
In the fourth quarter of 2022, Styrene-Butadiene Rubber (SBR) market dynamics declined sharply as the demand for the product declined in China. Throughout the quarter, the country remained silent as government officials imposed COVID lockdown curbs. Oversupply of the product, along with low production cost impacted by the feedstock (styrene and butadiene) prices. The demand outlook remained weak, and the ex-works price of SBR had drastically decreased at the start of the quarter; downstream gas buying was slow and buying sentiments declined. In the quarter ending, suppliers received only fewer inquiries about the product as the approaching new year pressured the buyers to follow the wait-and-watch behavior. Furthermore, Bridgestone in Huizhou shut down its SBR-producing plant in mid-Q4. Towards the end of the quarter, the market prices of Styrene Butadiene Rubber (SBR) were USD 1430 per MT, CFR Qingdao (China).
Europe
The overall market trend of Styrene Butadiene Rubber (SBR) moved southwards on the back of declining demand for the product from the automotive and construction industries. Oversupply of the product in Europe became one of the factors for the plant shutdown by Trinseo. New order quantity declined throughout the quarter due to the inflammation rate and increased energy prices. The European Union agreed on an oil price cap leading to higher fuel and energy prices in the European market. Availability of sufficient feed with end-using manufacturing units along with intensified supply on Hamburg port of Germany. Towards the quarter's end, despite the incline in feedstock (styrene), the final prices continued to decline due to sluggish demand as the festive season approached. Towards the quarter's end, the prices of SBR in the German market settled at USD 2828 per MT, FD Wuppertal.
For the Quarter Ending September 2022
North America
In the North American region, the market dynamics of Styrene-Butadiene Rubber followed the stagnancy on the back of sluggish demand from downstream sectors. At the beginning of the third quarter of 2022, the US market witnessed stable downstream demand and easy logistics of feedstock and benzene from South Korea. Labour shortage and inflation in the country restricted the operational rate of Styrene Butadiene Rubber in the domestic market. Furthermore, demand dynamics in the downstream tire and Adhesives industries showcased fewer fluctuations. The automotive industry has been buoyant in the US market. Towards the quarter's end, the prices of Styrene Butadiene Rubber were USD 3009 per MT, CFR USG (USA).
Asia Pacific
In the third quarter of 2022, Styrene-Butadiene Rubber prices followed the downward trend in the Chinese market. The SBR prices fell due to a feedstock drop (Styrene and Butadiene) and deteriorating demand in the Chinese domestic market. Demand from the downstream tire industry was weak, as automobile sales remained low. Slight political stress between Taiwan and China impacted the logistics between other South Asian countries. The festive week in China impacted the operational rate of Styrene Butadiene Rubber in the country. Towards the end of the quarter, the market prices of Maleic Anhydride were USD 1695 per MT, CFR Qingdao (China).
Europe
In the European market, the overall prices of Styrene Butadiene Rubber followed stagnancy throughout the third quarter of 2022. The decline in demand from the downstream shoe, carpet, and adhesives affected market sentiments as consumption in the region fell. The traders saw an increase in inventory with the traders and suppliers due to increased product stockpiling, consequently decreasing the prices. Products were widely available in the regional market. High diesel prices and a truck driver shortage in Germany governed the increase in logistics charges. According to Firm Transport Intelligence, road freight charges in Germany increased by 6%. This has reduced the demand for the product from end users and low production of Styrene Butadiene Rubber in the domestic market. Towards the third quarter end, the market price of Styrene Butadiene Rubber was USD 3662 per MT, FD Wuppertal (Germany).
For the Quarter Ending March 2022
North America
The styrene-Butadiene Rubber market started the quarter on a weak note owing to sluggish demand fundamentals. As of February, SBR prices were assessed at USD 3750 per MT on CFR basis. Port of Los Angeles, a key port for imports, has increased mobility after sustained congestion in January, where 109 vessels were stranded in the port of Long Beach, LA. Exporting countries South Korea, China and others have maintained the material availability on a stronger side despite firm freight charges between Asia and US West Coast. Buying sentiment has been weak owing sluggish rate of production in the downstream automotive industry, which continues to face semiconductor shortages. However, market fundamentals changed drastically in the backdrop of the Russia-Ukraine war, which impacted the global supply chains. Freight charges, after stabilizing in early Q1, changed the momentum and again accelerated on several key routes, including Asia to the USA and other increasing prices of the imported material. Hence, Styrene-Butadiene Rubber prices finished the quarter on a strong note and were assessed at USD 3940 per MT on CFR basis.
Europe
The European Styrene Butadiene Rubber market remained volatile throughout the first quarter on the back of significant volatility in the petrochemical market stemming from uncertainty regarding crude oil and natural gas prices in Europe. Europe, a key exporter of SBR globally, faced a substantial rise in all key feedstocks and even in later stages of Q1 feedstock Butadiene availability became scarce, pressuring production rates as well as pricing dynamics of all Butadiene polymers and elastomers, including SBR. As of March, SBR prices were assessed at Euro 3420 per MT on FD basis. Other feedstock Styrene also faced inflationary pressure from rising upstream crude oil and LNG costs. Thus, prices of SBR increased persistently during Q1 2022.
Asia Pacific
In India, the Styrene-Butadiene Rubber market has been termed as stable to firm owing to high feedstock prices and robust demand fundamentals. India imports all its Styrene, and major exporters have been Far East Asian, Southeast Asian and Middle East Asian countries. Hence, prices of Styrene have been on the uptrend as crude volatility left limited space for price normalization for overseas manufacturers. Consequently, SBR prices have also been robust, and a significant climb has been observed in the market. On-demand side, the tire industry remained a healthy end-use industry for SBR as both Original equipment tires and replacement tires consumption continues to be on the stronger side. As of the 1st week of March, SBR prices were assessed at INR 172410 per MT (USD 2260.48 per MT) on an Ex-location basis. In China, after having a sluggish start to 2022, Styrene-Butadiene Rubber (SBR) market changed momentum after the lunar new year holidays in China. Styrene-Butadiene Rubber prices have increased in the last couple of weeks owing to a rebound in demand fundamentals in the market.
For the Quarter Ending December 2021
North America
Several tire manufacturers have remarked that 2021 ended on a robust note in terms of production and revenue. This has epitomized SBR demand from tire and other industries. Meanwhile supply fundamentals improved, and logistics strengthened after struggling Q3 where truck availability was termed as severely limited across the North American region. SBR prices have vindicated the above demand pattern where prices continuously increased throughout Q4. Styrene Butadiene Rubber prices were assessed in early October at USD 3255 per MT while priced ended the last quarter at USD 3667 per MT on CFR basis in December.
APAC
Styrene Butadiene Rubber prices remained on a declining trend throughout Q4 in China as cost pressure from feedstocks styrene and butadiene dropped due to deteriorating coal and crude prices in the last quarter. Demand from tire industry was also termed as firm by several market participants due to stagnant offtakes for Original Equipment and stable demand from replacement tire segment. Price of SBR fell from USD 2146 per MT in October to USD 1960 per MT on FOB basis. Indian SBR market also mirrored the above market sentiment where declining feedstocks and drop in demand from tire industry stabilizes the prices in Q4 after flourishing previous quarters. In Indian domestic market, Styrene Butadiene Rubber price dropped to INR 178046 per MT on Ex-location basis in December
Europe
Robust demand from downstream tire industry and consistently risen feedstock prices have culminated into a strong quarter for SBR market. Styrene Butadiene Rubber market gained from increased consumption and Ex-work price rose from USD 3010 per MT in October to USD 3288 per MT in December. Styrene and Butadiene remained on an incessant rise which pressured manufacturers to keep the SBR prices healthy throughout Q4. SBR Imports from Southeast Asia remained hampered on the European shores as high freight charges provided limited opportunity for Southeast Asian exports to be competitive and sustainable across European countries.
For the Quarter Ending September 2021
North America
In North America, SBR market witnessed an uptrend in the prices during Q3 backed by the spiraling prices of feedstocks Butadiene and Styrene. Moreover, many manufacturers were compelled to shut their manufacturing units as a repercussion of Ida hurricane along the Gulf Coast of US which directly impacted the availability of SBR. For instance, Americas Styrenics LLC., one of the leading producers of Styrene imposed force majeure due to sudden landfall of Ida hurricane. Hence, curtailed production and disruption in supply chains led to the feedstock scarcity and consequently fumed the prices of SBR in the region. However, the demand from the downstream sectors remained the same in this quarter.
Asia Pacific
During the third quarter of 2021, SBR market reported mixed sentiments in Asia. At the beginning of the quarter, SBR prices witnessed a downward trend due to the high production rates and ample supplies of feedstock Styrene and Butadiene. Moreover, despite the hike in values of feedstocks globally, market sentiments of SBR turned bearish in the region due to feeble demand from downstream industry. In the Indian market, SBR prices dropped in the July-August period due to the reduced offtakes from the automotive sectors as the industry is still recovering from coronavirus aftermath. In addition, traders were compelled to reduce the prices of SBR to initiate sales in the times of dull demand as negligible queries were observed from buyers. However, in September, a marginal surge in the prices of SBR was witnessed in the Indian market backed by the congestion on the several ports of China and high freight charges due to shortage of shipping containers. Ex-Mumbai SBR prices dropped to USD 2332.78 per MT in August from USD 2369.50/MT July rates.
Europe
The European market witnessed tight supply of feedstock Butadiene and Styrene backed by the supply chain disruption caused by Ida hurricane in US that consequently fumed the prices of SBR in the region. Moreover, constrained domestic production due to the natural gas crisis and exorbitant freight charges also contributed to the inflation in the pricing trend of SBR in Europe. Besides, the demand from downstream automotive and medical sectors remained sturdy throughout the quarter. Hence, Ex-Work Wuppertal SBR prices were assessed at USD 2865/MT in September registering a hike by around 3.5% since July.
For the Quarter Ending June 2021
North America
SBR supplies in the North American region improved compared to the previous quarter owing to the restart of several feedstock Styrene and Butadiene capacities in the region including Styrolution, LyondellBasell etc. which kept better availability of feedstock for production. The recovery of industrial infrastructure after devastating effects of the winter storm in the US Gulf coast supported the volume offtakes. Demand witnessed a strong uptrend from the downstream tire industries despite reduced production rates of automobile amid chipset shortages. Pricing trend in the regional market observed a constant up stride due to the more enquiries than supplies as spot buyers procured orders at large quantities to replenish the inventories and clear backlog of orders.
Asia Pacific
During the second quarter of 2021, SBR supplies in the Asia Pacific region surged, however the availability of feedstock Butadiene created somewhat hinderance in supplies amidst the turnarounds in Northeast Asian region. Whereas the addition of new feedstock SM and Butadiene capacities eased the upstream availability by the end of Q2. Demand prospered due to surge in enquiries from the overseas market specially from the USA, however domestic demand remained subdued amidst the surged consumption of natural rubber instead of synthetic rubber. Offtakes were consistent from the tyre manufacturers who reported better sales margins due to pick in tyre manufacturing. Whereas in India offtakes were limited from automotive sector amidst the impact of second COVID wave. Ex-works Mumbai SBR offers were settled at USD 1211 per tonne in May.
Europe
SBR supplies in the European region were marred by mixed sentiments amidst the inflationary trend in the key feedstocks, as the regional availability of Styrene Monomer improved whereas the Butadiene was constrained due to the rising demand in the USA. Demand surged as the enquiries were consistent from the downstream medical and automotive sectors, hence the offtakes were consistent from the tire manufacturers in the European region. The pricing trend observed an uptrend taking cues from the cost upstream during the second quarter of 2021.
For the Quarter Ending March 2021
North America
The supplies of SBR in the US were tight during the first quarter of 2021. It was anticipated that supplies are likely to remained tight till the next quarter, due to the ongoing impact from the unprecedented freeze in US Texas gulf region. A major producer shut it plant in the US amid the deep winter freeze which accounts for 20.5% of the total SBR production in terms of capacity. However, the demand surged towards the quarter end as the consumption from automotive sector improved. FOB Louisiana offers for SBR were assessed at USD 1845 per tonne in the closing week of March, showing some stagnancy within March, but sharp gains over January settlements.
Asia-Pacific (APAC)
The supplies of SBR in Asia Pacific region tight during the Q1 of 2021, as an outcome of unplanned shutdowns of major plants in China amid Chinese lunar new year and some production-related hiccups. To cover the production shortages in China, South Korean producers increased the production of SBR. The demand of Styrene Butadiene Rubber surged as the automotive sector slowly but steadily recovered in the region. However, there are still some uncertainties among traders, as the resurgence of second COVID, led to the surge in the prices of SBR in North-East Asia to USD 1640/ton during the first week of February.
Europe
During the first quarter of 2021, the supplies of Styrene Butadiene Rubber remained constrained as the major economies in the region such as Germany, France etc. declared the lockdown due to re-emergence of second COVID wave, followed by the continued exports to Asia. The demand slightly improved as the automotive sector slowly recovered, however, extended lockdown in the region restricted the expectations of recovery.
For the Quarter Ending December 2020
North America
The rebound of the major sectors such as the automotive and construction resulted in better demand of SBR although overall sentiments were mixed as the economic slowdown and work from home culture continued to limit the car purchases. Supply of Butadiene was heard turning more convenient followed by the producer’s intentions to ramp-up the production rates to catch-up with the demand surge post the hurricane season. The recovery in demand for downstream products fetched most of the SBR producers bulk contracts while increased tariffs on the imported tires kept the regional demand strong. Several producers were heard securing feedstock in large amounts to build inventories amid anticipations of steady demand recovery in 2021.
Asia-Pacific (APAC)
During the H1 of Q4, majority of plants were heard operating at low production rates due to the precautionary measures for COVID, amidst some production issues and maintenance turnarounds which were heard in September and October, thereby effecting product supply in the ASEAN region, China and India. The reopening of regional economies provided momentum in the market activities and trades. The demand outlook remained stable during the quarter, triggering a spike in the price of SBR in the Indian market which maintained an average price of USD 1302 per tonne as the government efforts helped in pacing-up the business and trading activities. Demand from the downstream tire industry inclined as the automotive sector strengthened ahead of the festive season. Crunch in the availability of feedstock Butadiene kept the spot offers uplifted throughout the quarter.
Europe
SBR prices reported fresh hikes during the quarter as feedstock Styrene prices spiked by approximately 15% between Oct-Nov due limited supply from the America’s due to Hurricane related disruptions and pent-up demand from the Asian region. Availability in Russia was reported to be constrained which resulted in higher SBR cost in December. Pre-stocking activity supported the demands fundamentals as consumers secured supplies in October. The second lockdown imposed in late December impacted the downstream tire sector thereby decelerating the purchasing activity towards the end of the year.
