1. Price Trend

According to the data from SunSirs, the price of domestic SBR rose slightly last week (November 18-22). The price at the beginning of the week is 10,960 RMB/ton, and the price at the weekend is 11,060 RMB/ton.

2. Market Analysis

Supply side is tight.

The supply of SBR is tight, which supports the price of styrene-butadiene. Recently, the domestic styrene-butadiene plant operating rate has continued to be low, and the load is basically around 50%. According to observation from SunSirs, Jilin Petrochemical LLC's 140,000-tons-per-year styrene-butadiene rubber plant currently runs two lines of production. One line produces Jihua 1500E, and the other line produces Jihua 1502. The daily output is about 260 tons. Meanwhile, Fushun Petrochemical LLC’s 200,000-ton-per-year styrene-butadiene rubber plant runs three lines recently. Two lines are producing 1502, and another one is producing 1500E. Lanzhou Petrochemical LLC’s 150,000-tons-per-year styrene-butadiene rubber plant is operating in two lines. Currently, one line is producing 1500E and the other line is producing 1712. Other SBR producers such as Tianjin Lugang LLC, Hangzhou Yibang LLC and Fuquan Chemical LLC continue been stopped.

Prices of raw materials fall slightly.

The price of raw materials fall slightly: the price of raw material- 1,3-butadiene fall slightly. With such cost driver, the price of SBR decreases. According to SunSirs, the price of 1,3-butadiene at the beginning of week is 8,634 RMB/ton and price by the weekend is 8,590 RMB/ton with a slight decline by 0.51% overall.

3. Market Forecasting

According to SunSirs' analysts, the tight supply associated with the rise of Shanghai Rubber has formed a strong support for the price of styrene-butadiene. However, the raw materials are relatively weak. In the later period, the SBR market will maintain a bullish posture in the short term.

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