The robust Styrene Butadiene Rubber (SBR) market in Q1 2024 is supported by various factors. Rising demand from the automotive sector, particularly in tire manufacturing, plays a pivotal role as vehicle production increases. The construction industry also contributes, with expanding infrastructure projects driving demand for SBR in adhesives, sealants, and waterproofing materials. Improved supply chain stability, better raw material availability, and lower logistics costs further strengthen the market outlook.
In Q2 2024, SBR prices saw significant increases in the Asia-Pacific (APAC) and European regions, bolstered by the availability of key feedstocks like butadiene and styrene from strong petrochemical industries. However, freight rate hikes, caused by container shortages, vessel delays, and cargo space limitations, directly impacted SBR pricing dynamics as shipping companies passed on additional costs.
By Q3 2024, the SBR market experienced steady growth, with prices stabilizing at around 1980 USD/MT in FOB Busan, despite stagnant demand from end-user sectors. Rising demand for consumer goods and raw materials, alongside capacity constraints, further intensified freight costs and created an unpredictable market environment.
Looking ahead to Q4 2024, SBR prices are expected to decline due to seasonal demand reductions, particularly in colder regions where harsh weather slows down key industries like automotive and construction. This seasonal drop may result in oversupply, causing prices to dip. A recovery in SBR prices is expected in warmer months, as demand from these sectors typically rebounds.