The price of styrene butadiene rubber in China fell sharply in February. The price at the beginning of the month was 11,440 yuan/ton, and the price at the end of the month was 9,960 yuan/ton. The price at the end of the month dropped by 12.94% compared with the beginning of the month, which was relatively weak overall.

First, crude oil fell sharply, dragging down butadiene and styrene nitrile. The price of butadiene in China has dropped sharply, from 8,056 RMB / ton at the beginning of February to 6,223 RMB/ ton at the end of February, down 22.75% overall. On the other hand, the price of styrene in China fell sharply, from 7233 RMB/ton at the beginning of February to 6700 RMB/ton at the end of the month, down 7.37% overall.

Secondly, affected by "COVID-19" epidemic prevention and control, especially in the first and middle of February, domestic traffic control is relatively strict. The flow of production materials is not smooth. On the other hand, the resumption of production of domestic downstream enterprises have been delayed. Post-holiday demand is weaker than in previous years. 

By the middle of February, the rate of return to work in the downstream tire industry in the vicinity of 30% and return to work rate of enterprises are lower than 10~30%. Therefore, in February the overall volume of light, forming styrene butadiene rubber negative. In late February, with the increase in the number of enterprises returning to work, the recovery rate reached 60~ 70%, but the recovery rate is still relatively low, basically within 50%.

Finally, domestic enterprises reduce the starting load of the device, to a certain extent to alleviate the downward pressure and extent of butadiene. In early February, the overall rate of domestic styrene butadiene rubber operating rate in the vicinity of 60~ 70 percent. In the later period, in order to cope with the inventory pressure caused by traffic and the impact of rework, the load of some styrene butadiene rubber enterprises has been reduced. It is understood that the load of Yangzi petrochemical plant has been reduced to 70%, Xinjiang Lande plant from two lines to the first line, and Shenhua chemical plant has been reduced to 60-70%.

Market forecasting aspect, the price of raw material butadiene declined, coupled with the current low international crude oil prices, raw materials to butadiene rubber form support. On the other hand, the downstream tire start growth is still slow. It is expected that the late styrene butadiene rubber prices will continue to be weak consolidation.

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