As of November 30, the price of SBR was 11,800.00 RMB/ ton, 1.87% higher than 11,583.33 RMB/ ton at the beginning of the month, and 3.89% higher than 11,358.33 RMB/ ton, the lowest point in the month. On November 29, the SBR commodity index was 38.00, which was flat with the previous day, decreased by 63.32% from 103.60 (2011-09-08), and increased by 50.14% from the lowest point of 25.31 on April 07, 2020. (Note: period refers to 2011-09-01 to now)

After the rapid rise in October, the price of styrene butadiene rubber was slightly adjusted in early November, and then continued to rise in the middle of the month, but the overall rise was narrowed. According to the business agency, the ex-factory price of PetroChina SBR was basically stable in the first ten days of November, and then increased twice in the middle and last ten days. The overall ex-factory price increased 500 RMB/ ton in November, and the market offer showed a downward trend followed by an increase.

SBR production is basically normal; supply side inventory pressure is not big. According to SunSirs, the Bridgestone SBR unit was still in the process of shutdown and maintenance in November, and the SBR units such as Qilu, Lanhua, Jihua, Yangzi and Fushun were basically in normal operation. On the whole, the start-up of SBR in November was not different from that in October.

Since the second half of the year, the monthly output of downstream tires has continued to increase year-on-year, and the monthly cumulative output of tire casings has continued to narrow, forming a rigid support for styrene butadiene rubber. It is understood that in October 2020, the domestic output of rubber tire outer tire was 78.462 million, with a year-on-year increase of 15.2%; the cumulative output from January to October was 66.1143 million, a year-on-year decrease of 2.1%.

The high price of raw materials forms the cost support. Butadiene and styrene prices continued to rebound, and the cost side promoted the rise of SBR. According to the monitoring of SunSirs, as of November 30, the price of butadiene was 9,938 RMB/ ton, an overall increase of 8.02% compared with 9,200 RMB/ ton at the beginning of the month; as of November 30, the price of styrene was 8,416 RMB/ ton, which was 19.38% higher than 7,050 RMB/ ton at the beginning of the month.

SunSirs analysts believe that the current crude oil price fluctuates in a narrow range, and the prices of raw materials butadiene and styrene are high, which will form a certain support for SBR. In addition to the rigid demand of some downstream, China SBR will continue to maintain a high level in the future.

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