Industry Overview - Demand for synthetic rubber in Western markets is declining due to a slowdown in automotive and tyre manufacturing, alongside increased global competition [1] - Global butadiene and synthetic rubber prices are experiencing a downward trend as a result of these market conditions [1] Price Trends - European butadiene contract price for December 2025 decreased to €720 per tonne ($837/t), down from €1,050 per tonne in March 2025, marking the ninth consecutive decline [2] - In the US, spot butadiene prices fell to $562 per tonne at the end of November 2025 [2] - In China, domestic butadiene prices averaged Yuan 7,021 per tonne ($988/t) in November, reflecting a 16% decrease from October and a 42% decline from January 2025 [2] - Global prices for Styrene-Butadiene Rubber (SBR) and Butadiene Rubber (BR) have also decreased in line with falling butadiene feedstock prices [2] Competitive Landscape - The synthetic rubber industry, particularly in the commodity segment, is facing intense competition from Chinese producers, which has negatively impacted profitability and led to plant closures [2] - Notable closures include Arlanxeo's Port Jerome facility in France and Lion Elastomers' facility in Texas, indicating a consolidation trend in Western synthetic rubber production [2] Demand Variability - Demand for advanced rubber grades remains strong, particularly supported by the automotive industry, while commodity rubber grades are experiencing sluggish demand [3] Trade Dynamics - In Europe, extra-regional EU27+UK SSBR exports increased by 30% in the first three quarters of 2025, driven by a 49% rise in shipments to China [4] - Conversely, extra-regional EU27+UK ESBR exports fell by 10% year-on-year, primarily due to significant losses to India [4] - Lower butadiene prices in Asia, combined with soft demand and uncertainty related to US tariffs, have made ESBR production in Asia more competitive, leading to reduced European exports [4] - China's synthetic rubber production is growing to meet higher demand from the automotive and tyre industries, resulting in increased exports to the ASEAN region [4]

Core Viewpoint - The establishment of the integrated polystyrene new materials project by Huizhou Renxin New Materials Co., Ltd. represents a significant investment of 3.8 billion yuan, aimed at strengthening and supplementing the industrial chain in the Daya Bay petrochemical area, thereby enhancing the resilience of the industry chain [1] Group 1 - The project has a total investment of 3.8 billion yuan and is expected to generate an annual output value of approximately 7.8 billion yuan upon reaching full production [1] - The project will produce various materials, including 128,000 tons/year of low-cis polybutadiene new materials (LCBR), 550,000 tons/year of high-impact polystyrene (HIPS), and 100,000 tons/year of polymethyl methacrylate (PMMA) [1] - The main raw materials for the project will be sourced from related enterprises within the Daya Bay petrochemical park, utilizing advanced domestic and international technologies to create high-value-added products [1] Group 2 - The project aims to fill the gap in the domestic and South China markets for products such as PMMA, MS, LCBR, and SSBR, thereby improving the profitability and risk resistance of upstream and downstream enterprises in the Daya Bay petrochemical park [1] - The initiative is expected to transform the resource utilization status of bulk general products in the park, establishing it as the world's largest polystyrene manufacturing base and a comprehensive optical-grade polymer new materials manufacturing base [1]