SunSirs: Supported by Cost and Supply, China SBR Market Rose in May

The market for SBR rose in May. According to the commodity market analysis system of SunSirs, as of May 31st, the price of butadiene benzene 1502 was 14,000 yuan/ton, an increase of 4.35% from the beginning of the month's 13,416 yuan/ton.

In May, the production of SBR units decreased, and the supply pressure was not high; Downstream all tire production slightly declined in late May, with on-demand inquiries for the SBR market supported by rigid demand; The prices of raw materials such as butadiene and styrene have slightly increased, while the cost center of SBR has slightly increased. The market for SBR is supported by costs and supply, and the market is rising.

According to the Commodity Market Analysis System of SunSirs, as of May 31st, the price of butadiene was 11,875 yuan/ton, an increase of 1.39% from 11,712 yuan/ton at the beginning of the month; As of May 31st, the price of styrene was 9,683 yuan/ton, an increase of 1.61% from 9,530 yuan/ton at the beginning of the month.

Demand side: Downstream tire production fluctuated slightly in May, with primary support for rigid demand for SBR. It is understood that in May, the operating load of semi steel tires in domestic tire enterprises increased from 7.8% to around 7.9%; The operating load of all steel tires in Shandong tire enterprises increased from 6.4% at the beginning of the month to around 6.8% in the middle of the month, and decreased to around 6.6% at the end of the month. In May, downstream customers stocked up on demand, resulting in lackluster market transactions.

SunSirs analysts believe that high prices of raw materials such as butadiene and styrene are supported by the cost of SBR; The production of SBR is at a low level, and the pressure on the supply side of SBR is not high; At present, downstream tire production is stable with a slight consolidation, which provides strong support for the demand for SBR. Overall, the SBR market may experience a high consolidation in the later stage.

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