SunSirs: China SBR Market has Experienced a Narrow Decline

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

Recently (7.17-7.29), the market for SBR has experienced a narrow decline. According to the Commodity Market Analysis System of SunSirs, as of July 29th, the price of SBR in the East China market was 15,183 RMB/ton, a decrease of 0.55% from 15,266 RMB/ton on July 17th. The prices of raw materials butadiene and styrene have decreased, and the cost center of SBR has slightly decreased. Downstream tire production has slightly decreased, which is somewhat resistant to high priced sources of SBR; The production of SBR has slightly increased, but the inventory pressure on enterprises is not significant. As of the 29th, the mainstream market price of 1502 SBR in Fushun, Jihua, Yangzi, and Qilu in East China is around 14,950-15,350 RMB/ton.

Recently (7.17-7.29), the prices of raw materials butadiene and styrene have slightly decreased, and the cost center of SBR has also slightly decreased. 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; As of July 29th, the price of styrene was 9,370 RMB/ton, an increase of 1.20% from 9,483 RMB/ton on July 17th.

Recently (7.17-7.29), the overall start-up rate of domestic SBR plants has remained around 6.20%.

Supply and demand side: Downstream tire production has slightly decreased, and demand is supported by weak demand in the SBR market. Downstream inquiries are relatively cautious, and SBR prices have fallen from high levels. 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 raw materials such as butadiene and styrene will fall back from high levels, and the cost center of SBR will slightly decrease but still have support; The production of SBR has slightly increased, and there is not much pressure on the supply side of SBR; The current downstream tire production has slightly decreased, and caution has been exercised in the procurement of SBR. Overall, the SBR 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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