SunSirs: The Market Situation of China SBR has significantly Increased

https://www.chemnet.com   Jun 19,2024 SunSirs

Since June, the SBR market has been on the rise. According to the Commodity Market Analysis System of SunSirs, as of June 18th, the price of SBR in the East China market was 15,533 RMB/ton, an increase of 10.95% from 14,000 RMB/ton at the beginning of the month. The price of raw material butadiene has significantly increased, and the cost support for SBR is strong. Downstream tire production has recently declined, weakening the support for the rigid demand for SBR; The production of SBR is at a low level, and there is not much pressure on enterprise inventory. The factory price of SBR has remained stable after the increase, and merchants have reported high prices for consolidation. As of the 18th, the mainstream market price of 1502 SBR in Fushun, Jihua, Yangzi, and Qilu in East China was around 15,200-15,700 RMB/ton.

Since June, the raw material butadiene has significantly increased, while the price of styrene has slightly decreased. The cost support for SBR remains strong. According to the Commodity Market Analysis System of SunSirs, as of June 18th, the price of butadiene was 13,650 RMB/ton, an increase of 14.95% from 11,875 RMB/ton in early June; As of June 18th, the price of styrene was 9,505 RMB/ton, a decrease of 1.84% from 9,638 RMB/ton at the beginning of the month.

Supply and demand side: Since mid June, downstream tire production has significantly decreased, and in the short term, demand has been dragged down by the SBR market. As of June 14th, the operating load of semi steel tires in domestic tire enterprises is around 75%; The operating load of all steel tires for tire enterprises in Shandong region is about 5.2%.

From a fundamental perspective, analysts from SunSirs believe that the raw material butadiene has significantly increased, while the price of styrene has slightly decreased but still remains at a high level. The cost support for SBR is strong; The production of SBR is at a low level, and the pressure on the supply side of SBR is not high; The current decline in downstream tire production has dragged down the demand for SBR to a certain extent. Overall, the SBR market is expected to stabilize at a high level in the short term. If downstream production continues to decline, the price of SBR will fall back from a high level in the future.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.

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