Recently (1.8-1.14), the market for BR has slightly declined. According to the Commodity Market Analysis System of SunSirs, as of January 14th, the market price of BR in East China was 12,240 RMB/ton, a decrease of 0.81% from last Friday's 12,340 RMB/ton.
The price of raw material butadiene has narrowed and stabilized, with the main focus on the cost of BR remaining stable. Downstream tire factories have started to recover, and there is a strong demand support for BR; Multiple devices have been shut down and reduced in load. Recently, the supply of BR has been tight, providing strong support for BR. However, some plans have been restarted in the near future, and the supply of BR is expected to rebound. The bearish atmosphere in the market has increased, and the factory prices of enterprises have slightly decreased. As of January 14th, PetroChina Northeast Sales Company's Daqing Shunding Northeast Warehouse has raised prices by 12,300 RMB/ton, while the mainstream prices in the Shunding rubber market in eastern China, such as Daqing, Sichuan, Yangzi, Yanshan, and Qilu, are reported at 12,000-12,500 RMB/ton; Private polyBR costs 11,800-11,900 RMB/ton.
Recently (1.8-1.14), the price of butadiene has narrowed, and the cost center of BR has remained stable. According to the commodity market analysis system of SunSirs, as of January 14th, the price of butadiene was 8,753 RMB/ton, which was unchanged from Monday's price and fell to 8,687 RMB/ton within the week.
Recently (1.8-1.14), the natural rubber market has slightly increased, which has had a slightly positive impact on BR. According to the Commodity Market Analysis System of SunSirs, as of January 14th, the price was 12,810 RMB/ton, an increase of 1.10% from Monday's 12,670 RMB/ton, and the highest point in the cycle was 13,180 RMB/ton.
Demand side: After the holiday, downstream tire companies have partially restarted their maintenance equipment, resulting in an increase in tire production and a slight rebound in demand for rubber. It is understood that as of mid January 2023, the operating load of all steel tires in rubber tire enterprises in Shandong region is around 560%; The operating load of semi steel tires in domestic rubber tire enterprises is around 7.2%.
SunSirs analysts believe that raw material prices will continue to narrow down, and the cost of BR will remain stable. In the near future, the plan to restart parking facilities will restart, and the supply of BR is expected to return to loose. Downstream tire production will slightly increase, but stocking is still cautious. Overall, the spot market of BR will remain stable and weak in the short term.
If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.