SunSirs: The Market Trend of BR in China has slightly Declined

https://www.chemnet.com   Jul 30,2024 SunSirs

Recently (7.17-7.29), the market price of BR has slightly declined. According to the commodity market analysis system of SunSirs, as of July 29, the market price of BR in East China was 15,070 RMB/ton, a decrease of 0.59% from 15,160 RMB/ton on July 17. The price of raw material butadiene has fallen slightly from a high level; BR production continues to remain low; Downstream tire production slightly decreased, overall inquiries were cautious, and there was slight resistance to high priced sources. BR futures fell slightly from their high levels, and market trading remained flat.

Recently (7.17-7.29), the price of butadiene has fallen from a high level, and the cost center of BR has slightly decreased, but overall there is still support. According to the Commodity Market Analysis System of SunSirs, as of July 29th, the price of butadiene was 12,900 RMB/ton, a decrease of 1.71% from 13,125 RMB/ton on July 17th.

Recently (7.17-7.29), the construction of domestic BR plants has continued to maintain a low level. As of July 26, the construction of domestic BR plants is around 5.60%.

Demand side: Downstream tire production has slightly decreased, and demand is supported by weak demand in the BR market. Downstream inquiries are resistant to high priced sources of goods. As of July 24th, the operating load of semi steel tires in domestic tire enterprises is around 7.9%; The operating load of all steel tires in tire enterprises in Shandong region is about 5.4%.

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; Recently, downstream tire companies have seen a slight decrease in production and are cautious about purchasing BR. Overall, the BR market is expected to consolidate weakly in the short term.

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

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