SunSirs: China BR Market Situation Slightly Downgrades

https://www.chemnet.com   Jul 18,2024 SunSirs

Recently (7.8-7.17), the market price of BR has slightly declined. According to the commodity market analysis system of SunSirs, as of July 17, the market price of BR in East China was 15,160 RMB/ton, a decrease of 0.79% from 15,280 RMB/ton on July 8. The price of raw material butadiene has fallen slightly from a high level; BR production continues to remain low; Downstream tire production remains stable, but overall inquiries are cautious and slightly resistant to high priced sources. BR futures are consolidating at a high level, and market trading is flat.

Recently (7.8-7.17), the price of butadiene has fallen from a high level, and the cost center of BR has slightly decreased, but overall support is still strong. According to the Commodity Market Analysis System of SunSirs, as of July 17th, the price of butadiene was 13,125 RMB/ton, a decrease of 4.37% from 13,725 RMB/ton on July 8th.

Demand side: Downstream tire production is currently stable, and demand is supported by the urgent needs of the BR market. Downstream inquiries are resistant to high priced sources, and BR prices are consolidating at a high level. As of July 17th, the operating load of semi steel tires in domestic tire enterprises is around 79%; The operating load of all steel tires in tire enterprises in Shandong region is about 62%.

From a fundamental perspective, analysts from SunSirs believe that the high price of raw material butadiene will fall, and there is still support for a slight decrease in the cost center of BR; BR production remains at a low level and the market supply is tight; In recent times, downstream tire companies have started production steadily, but there is still a high sentiment towards BR. Overall, the BR market has remained strong in the near future with the support of costs and low production. It is expected that the market for BR will mainly experience a narrow consolidation in the later stage.

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

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