SunSirs: China BR Market is Weak and Declining

https://www.chemnet.com   Oct 23,2024 SunSirs

Recently (10.12-10.22), the market price of BR has been weak and declining. According to the commodity market analysis system of SunSirs, as of October 22, the market price of BR in East China was 16,110 RMB/ton, a decrease of 2.78% from 16,570 RMB/ton on October 12. The price of raw material butadiene continues to fall, and the cost is weakened by the support of BR; BR production is still at a low level; The downstream tires shall be adjusted when starting. BR suppliers have lowered their supply prices, and merchants have adjusted their quotes. As of October 22, the mainstream quotes for BR in Qilu, Daqing, Sichuan, and Yangtze in East China are 15,850-16,300 RMB/ton.

Recently, the price of butadiene has continued to decline slightly, and the cost support for BR has weakened. According to the Commodity Market Analysis System of SunSirs, as of October 22, the price of butadiene was 13,162 RMB/ton, a decrease of 2.05% from 13,437 RMB/ton on October 12.

Recently (10.12-10.22), the overall start-up rate of domestic BR plants is still at a low of 5.8%. Qilu Petrochemical has shut down for maintenance, and Taiwan Rubber's Ube plant is planned to restart. The pressure on the supply side of BR is not significant.

Demand side: Downstream tire production is stable, providing essential support for the BR market. As of October 16th, the operating load of semi steel tires in domestic tire enterprises has remained stable at around 79%; The operating load of all steel tires for tire enterprises in Shandong region has increased to about 60%.

From a fundamental perspective, analysts from SunSirs believe that the price of raw material butadiene will slightly fall, and the cost support for BR will continue to weaken; BR production remains at a low level, with little pressure on the supply side; In the near future, downstream construction has been adjusted steadily, and there is a conflict with the high price supply. In general, the market of BR may fluctuate in the short term.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.

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