Asian Polybutadiene Rubber prices stayed stable in late June 2025, supported by steady supply and solid tire sector demand despite weaker butadiene feedstock prices and minor downstream fluctuations.
In the second half of June, the Asian Polybutadiene Rubber (PBR) market witnessed stable pricing amid mixed signals from both the upstream and downstream sectors. Despite a slight dip in butadiene feedstock prices, production costs for PBR remained supported, helping to maintain overall price stability. Supply levels stayed consistent, while downstream demand—especially from the tire manufacturing sector—showed only minor fluctuations. The steady pace of semi-steel and all-steel tire production, coupled with balanced supply movements across key markets like South Korea and Japan, contributed to the overall equilibrium in pricing. Market sentiment remained cautious but largely stable during the period.
In the Asian market, PBR prices remained stable in the second half of June. Despite a slight decline in the price of the key feedstock butadiene, production costs for PBR continued to find support. Manufacturing activity in the PBR sector held steady, while downstream demand—particularly from semi-steel tire producers—saw a slight dip but remained strong enough to support overall consumption. Although butadiene prices have been weak and trending slightly lower, they haven't significantly impacted the cost structure of PBR, helping maintain price stability through the period.
On the demand side, the PBR market continues to receive solid support despite slight fluctuations in downstream tire production. As of June 22, the operating rate for semi-steel tire production among domestic tire manufacturers dipped slightly to around 73%. Meanwhile, approximately 61% of tire companies in Shandong have resumed operations for all-steel tires. These production levels, though showing minor adjustments, still reflect a steady pace of activity in the tire sector, which remains a key consumer of PBR and continues to underpin its market demand.
From the supply side, export figures for May tell two different stories. In South Korea, exports of butadiene-based rubber dropped pretty sharply—down around 17% from April to just over 24,000 MT. That could be due to slower orders or producers holding back a bit. On the flip side, Japan saw a small increase. Exports in May were up about 2%, reaching a little over 10,800 MT. It seems Japanese suppliers are keeping things steady, possibly filling gaps in regional demand while others pull back.
According to ChemAnalyst's outlook, the butadiene market is expected to remain weakly consolidated, though PBR costs are likely to stay supported. Production of downstream semi-steel tires has seen a slight decline, and overall supply and demand dynamics appear to be running on the softer side. Given these conditions, the PBR market is expected to experience modest fluctuations and remain in a phase of consolidation in the near term.
