Polybutadiene rubber (PBR) markets showed signs of resilience in mid-August, supported by steady supply, recovering automotive demand, and strong global tire sales. Manufacturer’s rebound and smooth logistics helped stabilize sentiment, while rising exports and EV momentum added fuel.
PBR prices in Japan saw a slight rise in mid-August, holding firm thanks to a well-balanced mix of steady supply and cautiously optimistic demand. Zeon Corporation made a solid comeback after wrapping up maintenance at its Singapore plant. Sure, net sales dipped a bit, but they more than made up for it with a whopping 115% jump in operating income—thanks to lower fixed costs and cheaper raw materials. That bounce-back helped calm the market and restore some confidence.
On the supply side, things were smooth sailing. No port pileups, and there was plenty of butadiene to go around. Suppliers played it smart—keeping inventory lean and tweaking production to match demand. And here’s a good sign: Japan’s exports of butadiene-based rubber went up by 7.48% in June, showing that overseas markets are still hungry for it.
Things were all over the place on the domestic front. Car sales in July dipped a bit, which meant less demand for stuff like seals and gaskets—basically, the parts made with PBR. Sumitomo Rubber saw a small drop in their first-half sales, just 1.6%, probably because people were holding back on spending. Replacement tires didn’t do so well either, down nearly 7%. But here’s the twist—original equipment tires actually jumped by 13.6% this year. Chip shortages are finally easing up, and car production’s picking up speed again.
Globally, the picture looked brighter. China’s vehicle sales surged 14.7% year-on-year in July, boosting tire production and PBR demand. Michelin responded by expanding its capacity in China, while Thailand’s tire market benefited from rising motorcycle and EV replacement tire sales.
In mid-August, the price of PBR in South Korea saw a slight increase. This uptick in the PBR price is mostly due to solid demand and a reliable supply chain. Even though there was a 1.36% drop in butadiene availability, suppliers managed to keep production steady thanks to a regional surplus. The tire industry has been a major player in this scene. Companies reported strong sales in the second quarter, which has fueled PBR consumption for both new and replacement tires. The push for electric vehicle (EV) tires has added even more momentum, especially as exports to Western markets have been growing.
As per the ChemAnalyst anticipation the price of the PBR is expected to showcase positivity in the upcoming sessions. This anticipation of rise in the PBR price is primarily linked with the projection of rise in the Butadiene price which is expected to impact the PBR production cost and the anticipated bullishness in the downstream Tire market demand will play a key role in stimulating the PBR consumption in the market.
