SunSirs: The Market of SBR Was Weakly Downward

Price trend

Since October, the market of SBR has declined. According to the monitoring of SunSirs, as of October 18, the domestic price of SBR was 11,675 RMB/ton, down 1.06% from the price of 11,800 RMB/ton at the beginning of the month. Recently, the ex factory price of SBR of PetroChina and Sinopec has been lowered. According to the monitoring of SunSirs, as of October 18, the ex factory price of Fushun SBR 1502 of PetroChina Northeast Sales Company had quoted 11,600 RMB/ton. The offer of merchants gradually declined. As of the 18th, the offer of SBR 1502 market was 11,500~11,800 RMB/ton. Both demand and cost weakened, which had a negative impact on SBR.

Analysis review

Under the pressure of oversupply, the prices of butadiene and styrene as raw materials have declined since October, and the cost support for SBR was weak. According to the monitoring of SunSirs, as of October 17, the price of butadiene was 7,760 RMB/ton, down 6.54% from the price of 8,303 RMB/ton at the beginning of the month; As of October 17, the price of styrene was 8,800 RMB/ton, down 5.38% from the price of 9,300 RMB/ton at the beginning of the month.

Since October, Weitai, Yibang and other SBR plants have been upgraded to two line operation; The operating rate of SBR in China slightly increased, and the supply was mainly loose.

Since October, the natural rubber market has declined slightly, with weak support for SBR. According to the monitoring of SunSirs, as of October 17, the price of natural rubber was 12,130 RMB/ton, down 1.46% from 12,310 RMB/ton at the beginning of the month.

The demand side was weak. The operating rate of downstream tire enterprises declined in October, and the demand side had not enough support for BR. It is understood that in the first ten days of October, the domestic full steel tire operating rate was 58%, and the semi steel tire operating rate was 63%, a low decline.

Market outlook

Analysts from SunSirs believe that the cost side and demand side have weak support for SBR, and the supply side is loose. It is expected that SBR will continue to operate weakly in the short term.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.