For the Quarter Ending March 2025
North America
In Q1 2025, the Styrene-Butadiene Rubber (SBR) market in the U.S. experienced increasing price trends, primarily influenced by feedstock costs and shifting demand dynamics.
Early in the quarter, SBR prices remained stable, supported by steady inquiries, particularly from the automotive sector, where SBR is a key component in tire manufacturing. However, challenges emerged as demand softened, notably due to weaker automobile production and consumers opting for cheaper imported tires.
The decline in butadiene prices during the latter part of the quarter contributed to a reduction in production costs, but styrene prices remained more stable, reducing the cost support for SBR. As a result, SBR prices saw a decrease in February and March, particularly in the wake of market softening and increased inventory pressures. Furthermore, ongoing shipping disruptions and the introduction of new tariffs added complexity to the supply chain, slowing down retreading processes. Despite these setbacks, stable global auto production and steady downstream tire manufacturing helped maintain a baseline demand for SBR.
APAC
In Q1 2025, the Styrene-Butadiene Rubber (SBR) market in Asia faced mixed price trend, marked by weak demand and a decline in prices. A softened outlook across key sectors such as automotive, electronics, and personal products contributed to the downturn. The automotive sector, a significant consumer of SBR, saw sluggish car sales, particularly in internal combustion engine vehicles, with economic stagnation and tightening credit exacerbating the issue. While China's tire export market experienced growth, buoyed by advancements in product quality and global competitiveness, local demand remained subdued, particularly in Northeast and Southeast Asia. Feedstock costs, including styrene and butadiene, were impacted by fluctuating oil prices, further putting downward pressure on SBR prices. However, China's strong growth in new energy vehicles (NEVs) provided a temporary boost to demand, though it faced challenges such as tariff investigations and fluctuating shipping costs. Overall, despite some stability toward the end of March, the SBR market in Asia remained cautious, with stakeholders adjusting strategies while awaiting more favorable economic signals for recovery.
Europe
In Q1 2025, the European SBR market experienced a relatively increasing price trend, influenced by modest demand from key industries such as tire manufacturing, automotive, and glove production. The automotive sector, in particular, faced significant challenges, including CO2 regulations, competition from China, and restructuring efforts, especially in Germany. Despite this, positive factors such as stable styrene and butadiene feedstock prices provided some price support. The decline in crude oil prices led to reduced production costs for naphtha and benzene, but the overall market remained subdued, with weak demand keeping prices steady. Additionally, the European automotive market showed mixed results: while hybrid vehicle registrations grew, electric vehicle (EV) sales saw a decline due to the end of government EV subsidies and infrastructure challenges. The tire sector saw a slight increase in replacement tire sales, though overall demand remained slow. With steady production levels and no significant changes in feedstock prices, SBR prices in Europe remained stable throughout the quarter, reflecting a cautious but steady market outlook.
For the Quarter Ending December 2024
North America
In Q4 2024, the U.S. Styrene-Butadiene Rubber (SBR) market exhibited decreased price trends, influenced by both supply and demand factors. Initially, in October, the market showed stagnancy due to lower feedstock costs and steady demand from downstream industries. Butadiene, a key raw material for SBR production, saw a significant price increase, raising manufacturing costs. However, despite fluctuations in styrene prices, the demand for SBR remained stable, helping to ease some of the cost pressures.
As the quarter progressed, a decline in SBR prices became apparent, mainly driven by lower butadiene prices and stable demand. However, the market remained constrained by limited SBR production, which kept supply tight. The U.S. economy presented a mixed outlook, with economic growth signs offset by consumer caution, which impacted overall demand.
The automotive sector, particularly tire manufacturers, continued to provide consistent demand for SBR. Despite ongoing challenges in leasing and reduced automotive sales growth, SBR prices remained relatively stable in Q4 2024, influenced by the steady demand from key end-use sectors, including tire production and automotive applications.
APAC
In Q4 2024, the Styrene-Butadiene Rubber (SBR) market in the APAC region experienced a decline in prices, influenced by a combination of weaker demand and lower feedstock costs. Butadiene prices, which had previously been high, fell during the quarter, while styrene prices fluctuated, rising initially and then dropping. These price fluctuations, coupled with reduced demand from key end-use industries, led to a decline in SBR prices across the region.
All-steel tire production remained at low levels, resulting in decreased SBR output, which further contributed to the weaker market conditions. Despite a slight increase in SBR supply following the holiday period, overall demand from downstream sectors, particularly the automotive and tire industries, remained sluggish. In South Korea, a major exporter of SBR, weak demand from international markets further pressured prices downward.
Although there was some support from stable raw material costs and limited production, the ongoing challenges in demand, particularly within the automotive sector, caused SBR prices to trend lower throughout Q4 2024. This decline is expected to continue as market conditions remain subdued.
Europe
In Q4 2024, the Styrene-Butadiene Rubber (SBR) market in Europe experienced an upward price trend, driven by a combination of steady demand and rising feedstock costs. The prices of butadiene and styrene saw a moderate increase during the quarter, which placed upward pressure on the overall SBR pricing. The European automotive sector, despite ongoing challenges, showed signs of recovery, particularly with rising demand for electric vehicles (EVs) and tire manufacturing, which positively impacted the consumption of SBR.
The ongoing shift towards EVs, supported by government subsidies in several European countries, led to higher demand for SBR in automotive production, particularly for tires. This trend was further supported by a slight recovery in the overall European economy, which bolstered demand from downstream industries.
While supply remained somewhat constrained due to production limitations, the increasing costs of raw materials and a tight supply chain contributed to the rise in SBR prices. As the demand from tire manufacturers and the automotive industry continued to strengthen, SBR prices in Europe saw a steady increase throughout Q4 2024, with expectations for continued growth moving into 2025.
For the Quarter Ending September 2024
North America
In Q3 2024, the Styrene Butadiene Rubber (SBR) market in North America experienced a notable uptrend in prices, driven by several significant factors. The 14% increase from the same quarter last year can be attributed to a combination of rising demand for SBR in various industries, including automotive and electronics, and fluctuations in feedstock prices such as styrene and butadiene.
The growing popularity of crossover SUVs and pickup trucks has helped U.S. automakers achieve stronger sales in recent years, as consumers valued the versatility these vehicles provided. Several factors have contributed to the increase in both the availability of used electric vehicles (EVs) and the number of interested buyers. SBR demand had risen, along with increasing freight charges.
The industry had also felt the impact of reduced leasing activity from three years prior, resulting in fewer lessees returning to dealerships to purchase or lease new vehicles. While top-line sales figures appeared strong, they were somewhat inflated by transactions that had been delayed from June due to software outages that had prevented many dealers from processing sales the previous month. In the USA, where the most substantial price changes were observed, the SBR pricing environment has been predominantly positive. The overall trends in the USA point towards a resilient SBR market, supported by consistent demand from the automotive sector and other key industries.
APAC
The third quarter of 2024 for Styrene Butadiene Rubber (SBR) in the APAC region has been marked by stability in prices. Various factors have influenced this market equilibrium. The consistent demand from the automotive, tire, and electronics industries has played a crucial role in maintaining stable prices. Additionally, the balance in feedstock costs, particularly styrene and butadiene, has contributed to the overall price stability. Limited SBR production levels have also helped in keeping supply-side pressures in check. Shifting the focus to Japan, the market has experienced the most significant price changes. Demand for the commodity from the automotive and electronics industries was affected when, in June 2024, new vehicle sales in Japan fell by 5% in the same month the previous year, according to the Japan Automobile Manufacturers Association. The market had been in decline since the end of the prior year after Daihatsu was ordered to halt all production following an investigation that uncovered decades of falsified safety test results. This scandal also affected sales of models shared with other brands. In early May, Daihatsu was allowed to fully resume production, with expectations that sales would recover in the latter half of the year as the companies addressed their order backlogs.
Europe
In Q3 2024, Styrene Butadiene Rubber (SBR) prices in the European region have experienced a notable increase, driven by several significant factors. The market has seen a consistent upward trend in prices, influenced by a combination of factors such as heightened demand, supply chain disruptions, and rising feedstock costs. This quarter has marked an 8% increase compared to the same period last year, reflecting the overall positive trajectory in SBR pricing. The quarter-on-quarter change of 11% further underscores the notable price adjustments within the market. Additionally, participants in the SBR tire market observed that Europe's competitiveness had been undermined by rising energy and transportation costs, along with increasing wages, which led to the closure of several SBR manufacturing plants in Germany and reduced operations in Poland. Nokian Tyres reported a strong performance in the second quarter of 2024, with net sales increasing by 11.2%, driven by improved tire availability in Central Europe. Notably, the price comparison between the first and second half of the quarter revealed a 3% increase, indicating a steady rise in SBR prices over the period. France, in particular, has witnessed the most significant price changes, with a stable yet positive pricing environment throughout the quarter.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Styrene Butadiene Rubber (SBR) market experienced a notable increase in prices, influenced by several key factors. A recovery in demand from tire manufacturing and automotive sectors significantly impacted market dynamics. The robust prices of primary feedstocks, styrene and butadiene, further compounded the upward trend, reflecting heightened production costs. Additionally, geopolitical tensions and increased freight charges strained supply chains, contributing to elevated delivery prices. The supply-demand balance in the market leaned towards tighter availability, exacerbating the price surge.
In the USA, SBR prices saw the most pronounced changes. The overall trend for the quarter was one of consistent price escalation, driven by stable yet firm demand from the automotive and tire sectors. Seasonal factors, including increased vehicle production and sales in spring, bolstered demand for SBR, thereby augmenting prices. The correlation between heightened summer vehicle usage and SBR demand was evident, reinforcing the seasonal uptick.
Comparing year-on-year data, SBR prices in Q2 2024 were down by 6% from the same quarter last year, despite a 10% increase from the previous quarter in 2024, underscoring a significant quarterly rebound. Conclusively, the latest quarter-ending price for SBR 1502 CFR USGC in the USA was recorded at USD 2103/MT, indicating a positive pricing environment marked by an overall upward trajectory.
APAC
In Q2 2024, the Styrene Butadiene Rubber (SBR) market in the APAC region experienced a significant upward pricing trend, driven by several critical factors. Primary influences included increased feedstock costs, particularly butadiene and styrene, coupled with stabilizing naphtha prices, which together pushed production expenses higher. Additionally, rising maritime cargo costs due to ongoing supply chain disruptions and elevated shipping rates compounded overall cost structures. The global rebound in the automotive and tire manufacturing sectors further amplified demand, exerting upward pressure on SBR prices across the region. Japan witnessed the most substantial price changes within the APAC region, underscoring a robust upward trend. Seasonal demand fluctuations also played a role, with the first half of the quarter demonstrating a 9% price increase over the second half, attributable to heightened procurement activities and inventory build-ups in anticipation of stronger market performance. By the end of the quarter, the price of Styrene Butadiene Rubber 1502 FOB Tokyo settled at USD 1863/MT, epitomizing the consistent upward pricing sentiment. Despite varied economic challenges, the SBR market maintained a positive pricing environment, driven by synergistic factors of increased production costs, strong market demand, and persistent supply chain constraints. This confluence of elements highlighted the resilience and robust demand profiles characterizing the APAC SBR market in Q2 2024.
Europe
In Q2 2024, the Styrene Butadiene Rubber (SBR) market in Europe experienced substantial fluctuations, primarily driven by escalating production costs and shipping expenses. The increasing prices of key feedstocks, styrene and butadiene significantly impacted overall SBR pricing dynamics. The strategic location of production facilities in Serbia and the considerable rise in shipping costs from China and Southeast Asia to Europe exacerbated these price changes. Additionally, supply chain disruptions, including strikes at major European ports, contributed to higher costs and prolonged delivery times. Germany witnessed the most pronounced price changes in the region. The German market showed a bullish trend in SBR pricing due to strong demand from the automotive and tire manufacturing sectors. Seasonal factors also played a role, with increased tire production during peak summer months driving up demand. Additionally, a 4% price increase was noted between the first and second halves of the quarter, underscoring the upward momentum. The latest quarter-ending price for SBR 1502 FD Wuppertal in Germany stood at USD 1820/MT, reflecting the overall positive pricing environment. The market sentiment for Q2 2024 was increasingly positive, with a consistent rise in prices driven by heightened production costs, robust demand, and constrained supply chains. This quarter underscored the resilience of the SBR market amidst economic pressures, highlighting the supply-demand dynamics that continued to shape the pricing landscape in Europe.
