After a strong start post holidays, China Styrene Butadiene Rubber dips marginally in third week of February
- 23-Feb-2022 2:10 PM
- Journalist: Li Hua
Post Spring holidays, China Styrene Butadiene Rubber market observed significant increase in prices as buying activities resumed after week-long holidays. SBR market gained consistently during the second week as optimism among buyers paved the way for bullish rally.
Styrene Butadiene Rubber prices gained 1.82% in the mid-February assessments. However, weak buying interest and ample availability of inventories halted the bullish run and SBR prices dropped by 1.5% in 3rd week of February.
Feedstock Butadiene and Styrene were both assessed as stable to firm as the crude oil rallies further northwards. Domestic Styrene prices were assessed at USD 1410 per MT basis during 2nd week assessments while Butadiene prices crossed USD 1210 per MT mark.
In the previous quarter, SBR prices nosedived continuously during November and December after initial bullish run in October 2021. Demand deterioration from tire industry was termed as key factor by several market participants behind incessant bearish sentiment during Q4.
As per ChemAnalyst, “Styrene Butadiene Rubber market is expected to improve in coming weeks as buying interest is likely to stabilize while cost pressure from upstream Styrene and Butadiene is expected to strengthen further. Automotive industry is also expected to rebound in Q2 where production rates may observe boost in numbers after sluggish Q4 2021 and Q1 2022.”