Styrene-Butadiene Rubber (SBR)

Styrene-Butadiene Rubber (SBR) Global Market Outlook

• The global SBR market is expected to grow at a CAGR of 4.9 percent during 2022–2025, majorly driven by the automotive tires industry. Historically, E-SBR was more popular than S-SBR, due to its superior processing properties. However, the global increasing need of high performance tires, which increase fuel efficiency, reduce rolling resistance, provide high traction during braking, and so on, is driving the demand for S-SBR from the tire sector

SBR Demand Market Outlook

• Globally, high demand for SBR is noticed from the automobile, industrial adhesives industry

• The global SBR market capacity–demand gap is expected to regain balance, as nominal capacity additions are planned in the next five years against the growing demand

Industry Drivers and Constraints : SBR

Drivers

Flourishing demand for high-quality rubber in the automotive industries

• SBR is used by the automotive tire companies to manufacture superior quality tires with heat-resistance and low rolling-resistance properties. These tires help in the smooth riding and reduced emission of CO2 in the environment.

Rising demand in emerging economies

• The newly emerging economies are to register increased growth of the SBR market, due to the rise in economy and industrialization.

Healthy demand from the footwear and the adhesives applications

• The demand for SBR from the downstream adhesives and footwear segments are expected to flourish, which, in turn, will increase the demand for SBR during the forecast period.

Constraints

Strict implications on the SBR market

• Strict regulatory implications are laid for the rubber market, as they are harmful to the environment and they need to be exposed carefully.

The fluctuating prices of the raw materials

• The price of the primary feedstock, butadiene, is highly fluctuating, due to the volatile crude oil prices. The highly volatile feedstock butadiene prices pose a severe threat to the SBR (E-SBR and S-SBR) production.

Cost Structure Analysis : SBR

The European SBR producers enjoy advantage, as the region is a net exporter of butadiene. North America and Asia are net importers of butadiene. However, utility cost was observed to be highest in Europe, followed by the US and Asia.

• Raw material cost constitutes to around 70 percent of the overall cost of the production for producing SBR

• SBR prices are tagged to its primary feedstock, butadiene. The SBR prices in the US and Europe regions settle in accordance with the butadiene prices

• The labor and electricity costs in Europe are higher compared to other regions, owing to shift for renewable sources of energy