SunSirs: China SBR Market slightly Declined

https://www.chemnet.com   Jun 26,2024 SunSirs

Recently (June 18th to June 24th), the market situation of butadiene styrene rubber has slightly declined. According to the Commodity Market Analysis System of SunSirs, as of June 24th, the price of butadiene styrene rubber in the East China market was 15,400 RMB/ton, a decrease of 0.86% from 15,533 RMB/ton on June 18th. The high price of raw material butadiene has been consolidated, and the cost support for butadiene styrene rubber is strong. Downstream tire production has slightly increased, but there is resistance to high priced sources of butadiene styrene rubber; The production of butadiene styrene rubber remains low, and there is not much pressure on enterprise inventory. On the 24th, the ex factory price of CNOOC butadiene styrene rubber 1502 was reduced by 200 RMB/ton to 15,600 RMB/ton, and merchant quotations were slightly consolidated. As of the 24th, the mainstream market price of 1502 butadiene styrene rubber in Fushun, Jihua, Yangzi, and Qilu in East China is around 15,200-15,700 RMB/ton.

Recently (from June 18th to June 24th), the high level of raw material butadiene has been sorted out, and the price of styrene has slightly decreased. The cost support for butadiene styrene rubber is still strong. According to the Commodity Market Analysis System of SunSirs, as of June 24th, the price of butadiene was 13,625 RMB/ton, a decrease of 0.18% from 13,650 RMB/ton on June 18th; As of June 24th, the price of styrene was 9,400 RMB/ton, a decrease of 1.10% from 9,505 RMB/ton on June 18th.

Recently (5.22-5.31), the overall operation of domestic butadiene styrene rubber plants has slightly increased to 5.9%.

Supply and demand side: Downstream tire production has slightly increased, and there is some support for the demand in the butadiene styrene rubber market. Downstream inquiries are resistant to high priced sources, and the high price of butadiene styrene rubber has slightly declined. As of June 20th, the operating load of semi steel tires in domestic tire enterprises was around 79%; The operating load of all steel tires for tire enterprises in Shandong region is about 58%.

From a fundamental perspective, analysts from SunSirs believe that the narrow consolidation of raw material butadiene and a slight decrease in styrene prices but still at a high level will result in strong cost support for butadiene styrene rubber; The production of butadiene styrene rubber is at a low level, and the pressure on the supply side of butadiene styrene rubber is not high; The current downstream tire production has slightly increased, but there is resistance to high priced sources. Overall, the butadiene styrene rubber market is expected to consolidate at a high level in the short term. If downstream production continues to decline, the price of butadiene styrene rubber 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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