SINGAPORE (ICIS)–Supply in high-cis
polybutadiene rubber (PBR) in southeast Asia
may be longer than expected this year, as
deep-sea suppliers as well producers from China
and India divert their surplus stocks to this
region amid the slump in their respective auto
market share in southeast Asia is expected to
stiffen this year, with the Chinese PBR makers,
the latest to join the growing tribe of
suppliers from India, Russia, Europe, Iran and
Saudi Arabia – on top of the traditional
producers from South Korea, Japan and Taiwan.
“The Chinese PBR makers recently exported about
500-1,000 tonnes every month to southeast Asia
and the export volumes are expected to increase
further this year because of the growing demand
from the Chinese tyre makers in this region,” a
Chinese trader said.
Several major Chinese tyre makers have set up
or shifted their production facilities to
countries in Southeast Asia, including Vietnam,
Thailand and Indonesia due to the growing
tensions in the US-China trade war.
Chinese PBR makers including Sinopec,
PetroChina and Transfar, have capitalized on
this recent development and diverted their
surplus stocks to the Chinese tyre makers in
China is the world’s largest automotive market
and a major tyre producer and exporter.
China-made tyres are exported worldwide
including to the US, a major export market.
“The deep-sea PBR makers are exporting
regularly to southeast Asia and the Indian PBR
maker is also taking a more active role in this
region,” another trader said.
The slump in the Chinese and Indian auto
sectors, had weighed on domestic demand,
prompting the Chinese and Indian PBR makers to
seek other export markets.
China’s vehicles sales in November reached
2.46m units, down by 3.6% year on year, falling
for the 17th consecutive month while production
increased 3.8% to 2.59m units, industry data
India’s vehicles sales in November declined by
12.05% year on year to 1.79m units, while
production fell by 1.41% to 2.34m units,
industry data showed
High-cis PBR is a key feedstock for the
production of tyres for the automotive
High-cis PBR spot prices softened to
$1,380-1,450/tonne CFR (cost and freight)
southeast (SE) Asia on 2 January, down by
$10/tonne from 19 December 2019, ICIS data
There was no ICIS publication on 26 December
2019 due to the Christmas holidays.
Focus article by
Front page image source: Yu
Fangping/Pacific Press Via Zuma