Styrene Butadiene Styrene Market Research Report - Global Forecast till 2030

Styrene Butadiene Styrene Market Research Report - Global Forecast till 2030

ID: MRFR/CnM/4492-CR | February 2021 | Region: Global | 449 pages

COVID 19 Impact Analysis: Styrene Butadiene Styrene

Pre Covid-19, the global styrene butadiene styrene market witnessed a significant demand on the backdrop of its widespread use in manufacturing of tires, shoe soles, conveyer belts, and others.

However, the outbreak of COVID 19 have had a negative impact on the global styrene butadiene styrene market. This is attributed to the supply-demand gap in the market. The outbreak resulted in global oil price crash, wherein oil price went negative, reaching – USD 37/barrel. This resulted in ample availability of raw material for production of styrene butadiene styrene; with low to negligible demand. The constriction of travel and lockdown of cities worldwide resulted in low demand for styrene butadiene styrene products.

The automotive sector is largely affected by the outbreak and has resulted in declined production of cars and automobiles. For instance, in March 2020, Fiat Chrysler Automobiles and Groupe PSA announced that they are completely stopping car production in Europe while Volkswagen AG has shut factories in Italy and Spain, as globally, manufacturers are trying to protect workers from the spread of the coronavirus. Major auto producers such as Maruti Suzuki, Hero MotoCorp, and Bajaj Auto also shut down operations in Gurgaon and Pune. Global car makers such as Fiat and Mercedes, and local car and truck maker Tata Motors as well as Hyundai and Honda also announced suspension of operations. The declined production and sales of automobiles is directly affecting the production of tires, which negatively influences the global market. 

Also, the transition by major players in this market to support the need for medical products is a key factor impacting the growth of the market. For instance, in April 2020, an Asahi Kasei Company, Sage Automotive Interiors, announced temporary transition of its US manufacturing operations for the production of medical fabrics such as washable face masks, gown material, and others to support the COVID 19 relief efforts.

Moreover, the strict lockdown across the globe has also impacted the construction and renovation activities, thereby decreasing the use of bitumen products for road paving and roofing applications.

Selling of essential goods through e-commerce has affected the sales of toys, sporting goods, rubber mats, and footwear; which use styrene butadiene styrene in their production.

For the post-COVID-19 scenario, the styrene-butadiene-styrene market remains a growth-positive market for the chemical industry players.
COVID 19 Impact Styrene Butadiene Styrene Market Share