SunSirs: China BR Market is Weak and slightly Declining

https://www.chemnet.com   Jul 01,2024 SunSirs

Recently (from June 24th to June 30th), the market price of BR was weak and slightly declined. According to the Commodity Market Analysis System of SunSirs, as of June 30th, the market price of BR in East China was 15,350 RMB/ton, a decrease of 0.90% from 15,490 RMB/ton on June 24th. Narrow range consolidation of high prices for raw material butadiene; The production of BR continues to remain low; Downstream tire production has slightly increased recently, but overall inquiries are cautious and slightly resistant to high priced sources. The futures of BR have slightly fallen from high levels. Following the price reduction of BR by PetroChina, the ex factory price of BR by Sinopec has also decreased by 400 RMB/ton to 15,400 RMB/ton near the weekend, indicating a weak trading atmosphere in the market.

Recently (from June 24th to June 30th), the price of butadiene has stabilized at a high level, and the cost support for BR remains strong. According to the Commodity Market Analysis System of Business Society, as of June 30th, the price of butadiene was 13,700 RMB/ton, an increase of 0.55% from 13,625 RMB/ton on June 24th.

Recently (from June 24th to June 30th), the construction of domestic BR plants remained at a low level, and as of June 30th, the construction of domestic BR plants was around 5.9%.

Demand side: Downstream tire production has slightly increased, with some support from the BR market. Downstream inquiries are resistant to high priced sources, resulting in a slight decline in the high price of BR. As of June 27th, the operating load of semi steel tires in domestic tire enterprises was around 790%; The operating load of all steel tires for tire enterprises in Shandong region is about 6.2%.

From a fundamental perspective, analysts from Business Society believe that the price of raw material butadiene is still at a high level, and the cost support for BR is strong; The production of BR remains low, and the market supply is tight; Recently, downstream tire companies have seen a slight increase in production, but there is still a fear of high prices for BR. Overall, the BR market has remained strong in the near future under the support of cost and low production. We still need to pay attention to the downstream stocking situation in the future.

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

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