After months of sustained highs, synthetic rubber prices have begun to decline in Q2 2026, driven by weakening butadiene (BD) costs and softened downstream demand.
Key Price Movements
As of mid-June, SBR1502 prices fell by 5.6% from their April peak, while BR9000 dropped 4.8% over the same period. Butadiene, the primary feedstock, saw a 7.2% decline following increased supply from Asian naphtha crackers restarting after spring maintenance.
Supply Factors
Several key naphtha crackers in South Korea and Japan resumed full operations in late May, boosting BD supply. Additionally, new BD capacity in China’s Zhejiang region came online in Q2, adding approximately 250,000 tonnes annually to regional supply. These developments have helped relieve the tight supply conditions that pushed prices higher in early 2026.
Demand Side
Tire manufacturers, facing high finished goods inventory, have slowed raw material purchases. The overall tire plant operating rate in China declined from 72% in March to 64% in early June, further weighing on synthetic rubber demand.
Outlook
If BD prices continue to ease and downstream restocking remains muted, further price declines of 3%-5% are possible in July. However, buyers should watch for potential supply disruptions due to upcoming Middle East cracker maintenance in Q3.
Post time: Jun-12-2026