SunSirs: Significant Increase in China BR Market in February

https://www.chemnet.com   Mar 04,2024 SunSirs

　　In February, the market for BR saw a significant increase. According to the Commodity Market Analysis System of SunSirs, as of February 29th, the market price of BR in East China was 13,230 RMB/ton, an increase of 6.95% from the beginning of the month at 12,370 RMB/ton.

　　After the holiday, the external price of butadiene has risen, driven by the increase in supply prices of production enterprises. Under the dual positive impact, the butadiene market has a strong upward atmosphere, and the cost center of BR has significantly increased; During the holiday period, downstream tire production was low and demand was weak. After the holiday, downstream tire production increased, providing certain support for BR; Zhenhua, Yihua, Zhejiang Petrochemical and other BR plants have successively shut down. In February, the overall production of BR decreased, and the supply of BR tightened compared to the previous period; Driven by comprehensive factors, the factory prices of enterprises have increased, and market quotations have significantly increased, leading to a rise in the market price of BR. As of February 29th, the mainstream prices of BR markets in East China, including Daqing, Sichuan, Yangtze, Yanshan, Qilu, etc., have been reported at 13,100-13,500 RMB/ton; Private polyBR costs 13,100-13,300 RMB/ton

　　Zhenhua, Yihua, Zhejiang Petrochemical and other BR plants have successively shut down. In February, the overall production of BR decreased, and the supply of BR tightened compared to the previous period. In March, there are still plans for maintenance of BR units such as Jinzhou Petrochemical and Zhejiang Chuanhua, and the supply of BR is expected to remain tight in the later stage.

　　In February, the price of butadiene increased significantly, and the cost support for BR strengthened. According to the commodity market analysis system of SunSirs, as of February 29th, the price of butadiene was 11,095 RMB/ton, an increase of 13.72% from the beginning of the month's 9,756 RMB/ton.

　　Demand side: During the holiday season, downstream tire production was low, and the demand side was weak. After the holiday, downstream tire production increased, providing certain support for BR. It is understood that as of February 23, 2024, the production capacity of all steel tires in Shandong region was 4.3%, and the production capacity of semi steel tires in China was 6.4%.

　　Market forecast: SunSirs analysts believe that raw material prices will continue to rise, and the cost support for BR will strengthen. Some equipment will be shut down for maintenance, while there are still other maintenance plans in the future. The pressure on the supply side of BR is expected to further decrease, and downstream tire production will increase compared to the holiday period. Overall, the spot market for BR will continue to rise in the future.

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