SunSirs; The Cost is Rising but the Supply Pressure is still Exist, and China BR Market Price is Consolidating at the Bottom

Last week (12.30-1.6), the price of BR stabilized at the bottom. According to the monitoring of SunSirs, as of January 6, the domestic price of BR was 10560 RMB/ton, down 0.19% from 10580 RMB/ton on Friday. On the one hand, the sharp rise in the price of raw materials has brought upward pressure on the cost of BR. On the other hand, the supply of BR has continued to be loose. In addition, the downstream construction has been slightly increased since the end of December. Within the week, the BR supplier will first reduce the factory price of BR and then increase it. According to the monitoring of SunSirs, as of January 6, the ex-factory price of BR of Sinopec North China Sales Company was reported at 10,100 RMB/ton. The market is cautiously optimistic about the future market, and the market trading price has reached the bottom for a short time. As of the 6th, the mainstream market of butadiene rubber in Qilu, Yanshan, Yangzi, Dushanzi and Sichuan reported 10,300-10,800 RMB/ton, while the mainstream market of private butadiene rubber reported 10,150-10,250 RMB/ton.

Last week (12.30-1.6), the price of raw butadiene rose sharply, and the cost of BR rose sharply. According to the monitoring of SunSirs, the price of butadiene was 7,785 RMB/ton as of January 6, up 7.51% from 7,241 RMB/ton on Friday.

The natural rubber market rose slightly last week (12.30-1.6), which supported BR. According to the monitoring of SunSirs, the price of natural rubber was 12,410 RMB/ton as of January 6, up 1.31% from 12,250 RMB/ton last Friday.

Since the end of December, with the return of employees from all parts of the country to work, the downstream tire enterprises have started to work slightly, and the stock of BR has been replenished slightly, and the market transactions have slightly warmed.

The analysts of SunSirs believe that the supply pressure of BR is still under, but the downstream construction has increased slightly. In addition to the sharp rise in cost, the price of BR has been at the bottom. It is expected that the price of BR will rise slightly in the future with the increase in cost and demand in China.

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