Styrene Butadiene Rubber Prices Expected to Fall in the Asian Markets
- 01-Dec-2021 5:26 PM
- Journalist: Jacob Kutchner
The prices of Styrene Butadiene Rubber (SBR) are expected to fall by a margin of 5%-10% during the upcoming month in the Asian markets. The prices of Styrene Butadiene Rubber were assessed at USD 2800 per tonne in south Asia in mid-October with the prices falling to USD 2668 per tonne in the last week of November. The demand for Styrene Butadiene Rubber has been stagnant due to the prevalent semiconductor chip shortage which has led to a fall in the automotive sales globally thereby preventing the sale of tires which are a major outlet for SBR rubber.
Crude oil prices are also expected to fall in the Asian markets with the major consumers including India, Japan, and South Korea deciding to release supply from the strategic reserves. This might also affect the buying sentiment in the automotive sector. Hence, the prices of SBR are expected to fall.
The feedstocks for Styrene Butadiene Rubber which include Styrene and Butadiene have also been declining in the Asian markets. This might release the upstream pressure on the prices and let the prices settle to lower levels.
SBR is a synthetic rubber which is widely used as a substitute of natural rubber, SBR has desirable properties such as improved strength, abrasion resistance, and blend compatibility, which can be further enhanced using some additives. SBR comprises of nearly 10-25% styrene and 60-70 % butadiene. The copolymerization reaction involves Butadiene and Styrene in 3:1 proportion by weight, respectively. The key applications of Styrene Butadiene Rubber are in tire, tire products, automotive parts, conveyor belt, gasket, and other mechanical rubber. The global demand for SBR stood at around 7.15 million tonnes in 2020 and is expected to grow at a CAGR of around 4.5% during the upcoming years till 2030.
As per ChemAnalyst, “the prices of Styrene Butadiene Rubber which have started to fall since mid-October levels are expected to remain on a downwards trajectory given that the demand for SBR remains slow and the upstream styrene monomer prices are falling in the Asian markets. The demand for Styrene Butadiene Rubber will pick up once the automotive sales are back on a growth curve.”