SunSirs: The Cost has Fallen, China BR Market is Weak and Declining

https://www.chemnet.com   Nov 12,2024 SunSirs

Recently (11.1-11.11), the market price of Shunding rubber has been weak and declining. According to the commodity market analysis system of SunSirs, as of November 11th, the market price of Shunding rubber in East China was 15,030 RMB/ton, a decrease of 3.53% from 15,580 RMB/ton on November 1st. The price of raw material butadiene has dropped significantly, and the center of gravity of BR has shifted downwards; Shunding rubber production has slightly increased; The downstream tire production is generally stable. Shunding rubber suppliers have lowered their supply prices, and merchants have adjusted their quotes. As of November 11th, the mainstream quotes for Shunding in Qilu, Daqing, Sichuan, and Yangtze in East China are 14,850-15,250 RMB/ton.

Recently, the price of butadiene has continued to decline, and the cost support for BR has weakened. According to the Commodity Market Analysis System of SunSirs, as of November 11th, the price of butadiene was 10,937 RMB/ton, a decrease of 11.26% from 12,325 RMB/ton on November 1st.

Recently (11.1-11.11), the overall start-up rate of domestic BR plants has slightly increased to 6.60%. Qilu Petrochemical recently restarted and Zhejiang Petrochemical stopped for maintenance, resulting in a slight increase in pressure on the supply side of BR.

Demand side: Downstream tire production has started to narrow down, and demand is mainly supported by the rigid demand of the BR market. As of November 7th, 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 60%.

From a fundamental perspective, analysts from SunSirs believe that the price of raw material butadiene will significantly fall, and the cost support for BR will weaken; BR production remains at a low level, with a slight increase in supply pressure; In the near future, downstream construction has been adjusted steadily, and there is a slight resistance to the high price supply. In general, the market of cis-1,4-polyBR is dominated by weak shocks 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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