SunSirs: China BR Market is Weak and Declining

https://www.chemnet.com   Aug 16,2024 SunSirs

Recently (8.5-8.15), the market price of BR has been weak and declining. According to the commodity market analysis system of SunSirs, as of August 15th, the market price of BR in East China was 14,500 RMB/ton, a decrease of 1.69% from 14,750 RMB/ton on August 5th. The price of raw material butadiene has fallen slightly from a high level; BR production continues to remain low; Downstream tire production has slightly declined, overall inquiries are cautious, and there is resistance to high priced sources, resulting in flat market trading. The supply price of BR has recently decreased. As of August 15th, the ex factory price of BR for PetroChina Northeast Sales Company is 14,200 RMB/ton. Currently, the mainstream market price for BR in Daqing, Sichuan, and Yangtze in East China is 14,300-14,550 RMB/ton.

Recently (8.5-8.15), the price of butadiene has continued to decline slightly, and the cost center of BR has slightly decreased. According to the Commodity Market Analysis System of SunSirs, as of August 15th, the price of butadiene was 12,425 RMB/ton, a decrease of 1.88% from 12,662 RMB/ton on August 5th.

Demand side: Downstream all steel tire production has slightly declined, and demand is supported by weak demand in the BR market. As of August 9th, 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 5.20%.

Market forecast: From a fundamental perspective, analysts from SunSirs believe that the price of raw material butadiene will slightly fall, and the cost center of BR will slightly decrease; BR production remains at a low level, with little supply pressure; Recently, downstream tire companies have experienced a slight decline in production, and they are cautious about purchasing BR. Overall, the BR market is mainly 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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