SunSirs: China SBR Market has slightly Declined

https://www.chemnet.com   Aug 06,2024 SunSirs

Recently (7.29-8.5), the SBR market has experienced a slight decline. According to the Commodity Market Analysis System of SunSirs, as of August 5th, the price of SBR in the East China market was 15,008 RMB/ton, a decrease of 1.15% from 15,183 RMB/ton on July 29th. Raw material butadiene has slightly decreased, styrene prices have slightly increased, and the cost of SBR is weakly supported. Downstream tire production has slightly rebounded, but caution has been exercised in purchasing high priced sources of SBR; The overall production of SBR remains low. Entering August, the supply price of SBR will decrease, and the bearish atmosphere in the market will increase. As of August 5th, the mainstream market price of 1502 SBR in Fushun, Jihua, Yangzi, and Qilu in East China is around 14,900-15,350 RMB/ton.

Recently (7.29-8.5), the price of raw material butadiene has slightly decreased, while the price of styrene has slightly increased, providing weak support for the cost of SBR. According to the Commodity Market Analysis System of SunSirs, as of August 5th, the price of butadiene was 12,662 RMB/ton, a decrease of 1.84% from 12,900 RMB/ton on July 29th; As of August 5th, the price of styrene was 9,444 RMB/ton, an increase of 0.79% from 370 RMB/ton on July 29th, with a narrow range of fluctuations overall.

Supply and demand side: Downstream tire production has slightly rebounded, and demand is supported by weak demand in the SBR market. Downstream inquiries are relatively cautious, and SBR prices are weakly fluctuating. As of July 31st, the operating load of semi steel tires in domestic tire enterprises was around 7.9%; The operating load of all steel tires in tire enterprises in Shandong region is about 5.6%.

From a fundamental perspective, analysts from SunSirs believe that the cost of SBR is weakly supported; The production of SBR remains low, and the pressure on the supply side of SBR is not significant; The current downstream tire production has slightly decreased, but caution is being exercised in the procurement of SBR. Overall, the SBR market is expected to consolidate weakly in the short term. The price of raw materials is facing downward pressure in the later stage, and the price of SBR may be dragged down by costs.

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

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