Styrene Butadiene Rubber Prices may Decline by 4-5% in Q1 2022 as Feedstocks observed reversal of market sentiment
- 14-Dec-2021 2:58 PM
- Journalist: Timothy Greene
In early December assessments of butadiene prices, a declining trend has been measured where prices have dipped globally. In South Asia, prices slumped to USD 800 per MT from USD 840 per MT in November while US Butadiene prices weakened to USD 1346 per MT during the initial weeks of the last month. The dip in US prices was termed significant as at one time, butadiene crossed USD 2000 per MT mark in US.
Styrene has also exhibited similar shift of balance globally where prices dropped to USD 1055 per MT in South Asia and US Styrene went down by USD 44 per MT to USD 1368 per MT on FOB basis.
Styrene Butadiene Rubber (SBR) generally follow the market sentiments of its feedstocks and in lieu of that these declining trends for butadiene and styrene can be termed as winds of change for downstream elastomers, particularly SBR prices.
2021 started on a great note for Styrene Butadiene Rubber when prices crossed USD 1500 per MT for the first time in more than a year across Asia consolidating on sharply increased demand for elastomers from downstream industries and unplanned shutdowns. Consequently, during Q1 2021 price spread between SBR and Butadiene rose to record highs and traversed USD 700 mark. US market also observed similar market trend where SBR prices surged in the backdrop of curtailed production and demand recovery in the North American region.
However, after a prolong period of strong performance, Styrene Butadiene Rubber prices have declined in China and similar trends can also be expected for USA and other regions as well. Consistency in volume intakes from downstream industries in the backdrop of underwhelming performance of automotive industry and recent speculations around construction industry in China has resulted in stagnancy in demand growth. Stability in demand along with declining feedstocks prices are likely to pressurize manufacturers to rollover the earlier prices or may force them to offer decreased prices for Styrene Butadiene Rubber. The dip in the prices can be expected in the ranges of 4-5%, estimating from the decline in prices of feedstocks butadiene and styrene.