Prices Of Styrene Butadiene Rubber Fall By 2% In China
- 15-Mar-2022 3:25 PM
- Journalist: Li Hua
In China, the price of styrene butadiene rubber (SBR) has dropped dramatically in recent months. This happened against the backdrop of a firmer feedstock, Butadiene, which has held up well due to strong export demand. Prices in China declined by 2% to USD 1185 per metric tonne in the week ending March 4, compared to the final week of February. The spread between styrene butadiene rubber and Butadiene has decreased as a result of the drop, generating a ripple effect across Chinese styrene butadiene rubber markets. In March, domestic styrene butadiene rubber supply was quite low, while demand was moderate. Ex-factory pricing for SBR producers have decreased. In late February, Yangzi Petrochemical's SBR plant was briefly shut down, although domestic styrene-butadiene-rubber enterprises were mainly operating normally, and supply was marginally curtailed.
styrene butadiene rubber prices have decreased because of a reduction in downstream plant operations resulting in lower demand in the region. Due to a downturn in demand and an already oversupplied scenario in China's automotive industry, styrene butadiene rubber imports dropped considerably between February and early March. Automobile sales in China decreased in March due to a scarcity of microchips used in automobiles. styrene butadiene rubber costs have been pushed down by lower demand for vehicles, which is the principal end use industry for styrene butadiene rubber.
As per ChemAnalyst, “The styrene butadiene rubber prices in the Chinese market are anticipated to dry up further while the spread is unlikely to reduce significantly in the near term since Butadiene prices are projected to remain constant as supply pressure from new plant capacity eases. styrene butadiene rubber values are expected to fall further in the next weeks due to increased supply side pressure and reduced operating rates at certain tyre manufacturing sites.”