The SBR market experienced a weak downward trend in February. According to the Commodity Market Analysis System of SunSirs, as of February 27th, the price of SBR in the East China market was 14,550 RMB/ton, a decrease of 5.93% from 15,466 RMB/ton at the beginning of the month. The price of raw material butadiene has significantly decreased, while the price of styrene has slightly adjusted, resulting in weaker cost support for SBR. Downstream tire production is steadily increasing, providing strong support for the demand for SBR; The production of SBR has significantly increased compared to January, leading to increased inventory pressure for enterprises. The market quotation is weak and declining. As of the 27th, the mainstream market price of 1502 SBR in Fushun, Jihua, Yangzi, and Qilu in East China is around 14,500-14,750 RMB/ton.

In February, the price of raw material butadiene dropped significantly, while the price of styrene slightly adjusted, resulting in weaker cost support for SBR. According to the Commodity Market Analysis System of SunSirs, as of February 27th, the price of butadiene was 10,937 RMB/ton, a decrease of 13.62% from 12,662 RMB/ton at the beginning of February; As of February 27th, the price of styrene was 8,638 RMB/ton, an increase of 1.03% from 8,550 RMB/ton at the beginning of the month.

Supply and demand side: The increase in downstream tire production after the holiday mainly supports the rigid demand of the SBR market. As of February 20th, the operating load of semi steel tires in domestic tire enterprises is around 80%; The construction of all steel tires by tire enterprises in Shandong region has slightly increased to around 67% of the load.

From a fundamental perspective, analysts from SunSirs believe that the current cost support for SBR is relatively weak; The production of SBR remains relatively high, with slight pressure on the supply side; Downstream tire production has increased, providing strong support for SBR. Overall, due to the impact of costs and supply and demand, it is expected that the short-term market for SBR will mainly consolidate weakly.

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