Price trend

The price of BR rose this week (2.10-217). According to the monitoring of SunSirs, as of February 17, the domestic price of BR was 11,910 RMB/ton, up 3.21% from the price of 11,540 RMB/ton on last Friday.

The price of raw butadiene continued to rise, and the cost of BR rose; Within the week, the factory price of BR of rubber supplier was increased by 300 RMB/ton, and the offer of merchants was higher. According to the monitoring of SunSirs, the ex-factory price of BR of Sinopec North China Sales Company was 11,700 RMB/ton as of February 17. As of the 17th, the mainstream quotations of Qilu, Yanshan, Yangzi, Dushanzi, Sichuan and other BR markets were 11,750~12,100 RMB/ton, and the mainstream quotations of private BR markets were 11,700~11,50 RMB/ton.

Analysis review

The supply of BR fluctuated slightly this week (2.10-217).

The price of raw material butadiene rose slightly this week (2.10-217), while the cost of BR continued to rise. According to the monitoring of SunSirs, the price of butadiene was 9,868 RMB/ton as of February 17, up 3.68% from the price of 9,518 RMB/ton on February 10.

This week (2.10-217), the natural rubber market consolidated in a narrow range, and the impact on BR was slightly negative. According to the monitoring of SunSirs, the price of natural rubber was 12,000 RMB/ton as of February 17, up 0.08% from the price of 11,990 RMB/ton on last Friday.

Recently, the construction of downstream tires had increased significantly, and the demand had strong support for BR. It is understood that as of February 10, 2023, the starting load of all steel tires of rubber tire enterprises in Shandong Province was 61.92%, 53.31% higher than that of the same period last year. The starting load of semi-steel tire of domestic rubber tire enterprises was 68.00%, 47.51% higher than that of the same period last year.

Market outlook

Analysts from SunSirs believe that the supply of BR is stable, and the downstream raw material inventory is gradually consumed. With the increase of tire construction, the demand for BR will increase in the later stage, and it is expected that BR will continue to rise in the later stage.

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