SunSirs: China SBR Market is Weak and Declining

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

Recently (from June 24th to June 30th), the SBR market has been weak and declining. According to the Commodity Market Analysis System of Business Society, as of June 30th, the price of SBR in the East China market was 15,350 RMB/ton, a decrease of 0.90% from 15,490 RMB/ton on June 24th. The high prices of raw materials such as butadiene and styrene have led to strong cost support for SBR. Downstream tire production has slightly increased, but there is resistance to high priced sources of SBR; The production of SBR has remained low, and there is not much pressure on enterprise inventory. Following the reduction in the factory price of SBR by Sinopec over the weekend, Sinopec has lowered the factory price of SBR by 200 RMB/ton, and merchant quotations have been slightly consolidated. As of the 30th, the mainstream market price of 1502 SBR in Fushun, Jihua, Yangzi, and Qilu in East China is around 15,200-15,700 RMB/ton.

Recently (from June 24th to June 30th), the prices of raw materials butadiene and styrene have remained high, and the cost support for SBR 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; As of June 30th, the price of styrene was 9,416 RMB/ton, an increase of 0.18% from 9,400 RMB/ton on June 24th.

Supply and demand side: Downstream tire production has slightly increased, and there is some support for the demand in the SBR market. Downstream inquiries are resistant to high priced sources, and the high price of SBR has slightly declined. As of June 27th, 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 62%.

From a fundamental perspective, analysts from Business Society believe that the prices of raw materials such as butadiene and styrene have stabilized at high levels, and 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 downstream tire production has slightly increased, but there is resistance to high priced sources. Overall, the SBR market is expected to consolidate at a high level in the short term.

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

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