The market for SBR in December saw an early rise and a slight decline at the end of the month, with an overall slight increase at the end of the month compared to the beginning. According to the Commodity Market Analysis System of SunSirs, as of December 31, the price of SBR in the East China market was 14,900 RMB/ton, an increase of 1.71% from 14,650 RMB/ton at the beginning of the month. The price of raw material butadiene has significantly increased, while the price of styrene has fallen from a high level. The cost support for SBR was relatively strong in the early stage and weak at the end of the month. Downstream tire production is steadily increasing, providing strong support for the demand for SBR; The production of SBR is basically stable, and the inventory pressure of enterprises is not significant. The market quotation range is sorted out, and as of the 31st, the mainstream market price of 1502 SBR in Fushun, Jihua, Yangzi, and Qilu in East China is around 14,750-15,050 RMB/ton.

In December, the price of raw material butadiene increased significantly, while the price of styrene decreased. The cost support of SBR was relatively strong in the early stage and weakened in the later stage. According to the Commodity Market Analysis System of SunSirs, as of December 31st, the price of butadiene was 10,800 RMB/ton, an increase of 11.05% from 9,725 RMB/ton at the beginning of December; As of December 31st, the price of styrene was 8,470 RMB/ton, an increase of 4.79% from 8,896 RMB/ton at the beginning of the month.

In December, the construction of domestic SBR plants was basically stable, and as of the end of the month, the construction of SBR in China was around 70%.

Supply and demand side: Since December, downstream tire production has steadily increased slightly, with demand facing the strong demand support of the SBR market. As of December 27th, the operating load of semi steel tires in domestic tire enterprises is around 79%; The operating load of all steel tires in tire enterprises in Shandong region is about 62%.

From a fundamental perspective, analysts from SunSirs believe that the cost support for SBR will weaken by the end of the month; The pressure on the supply side of SBR is not significant; The current downstream tire production is stable with slight fluctuations, and overall, the short-term trend of SBR is mainly characterized by narrow consolidation.

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