SunSirs: China SBR Market is Weak and slightly Declining

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

Since July, the SBR market has been weak and slightly declining. According to the Commodity Market Analysis System of SunSirs, as of July 31, the price of SBR in the East China market was 15,150 RMB/ton, a decrease of 1.09% from 15,316 RMB/ton at the beginning of the month. The price of raw material butadiene has significantly decreased, while styrene first rose and then fell, resulting in weakened cost support for styrene butadiene rubber. Downstream tire production has recently declined, weakening the support for rigid demand for styrene butadiene rubber; The production of SBR is at a low level, and the inventory pressure of enterprises is not significant. As of the 31st, the mainstream market price of 1502 SBR in Fushun, Jihua, Yangzi, and Qilu in East China is around 15,000-15,300 RMB/ton.

Since July, the raw material butadiene has significantly declined, and the price of styrene has slightly decreased, resulting in weaker cost support for styrene butadiene rubber. According to the Commodity Market Analysis System of SunSirs, as of July 31, the price of butadiene was 12,662 RMB/ton, an increase of 7.57% from 13,700 RMB/ton at the beginning of July; As of July 31st, the price of styrene was 9,344 RMB/ton, a decrease of 0.95% from 9,433 RMB/ton at the beginning of the month.

In July, the domestic SBR plant continued to operate at a low level, and as of the end of the month, the start-up rate was around 62%.

Supply and demand side: Since mid July, downstream tire production has been declining, and in the short term, demand is facing a certain drag on the SBR market. Downstream inquiries are relatively cautious. As of July 24th, 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 54%.

From a fundamental perspective, analysts from SunSirs believe that the prices of raw materials such as butadiene and styrene will decrease, and the cost center of SBR will also decrease; The production of SBR is at a low level, and the pressure on the supply side of SBR is not significant; The current downstream tire production is declining, which has a certain drag on the demand for styrene butadiene rubber. Overall, the SBR market is weak and volatile in the short term.

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

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