1. Price Trend
According to data from SunSirs, the domestic styrene butadiene rubber (SBR) price rose sharply in November. The price at the beginning of the month was 10,600RMB/ton, and the price at the end of the month was 11,320 RMB/ton, an overall increase of 6.79%.
2. Market Analysis
In November, butadiene, the raw material, fell and then rose, and the price of styrene fell slightly, which was not good for the styrene-butadiene rubber market.
According to data from SunSirs, the price of butadiene was 9,123 RMB/ton at the beginning of November, and dropped to 8,537 RMB/ton in the middle of the month. The price at the end of the month was 8,834 RMB/ton, which fell 3.17% at the end of the month compared to the beginning of the month. It is 6.42% higher than the lower point of this month. The price of styrene at the beginning of the month was 7,566 RMB/ton, and the price at the end of the month was 7,416 RMb/ton. The overall end of the month fell slightly by 1.98% from the beginning of the month.
The tight supply of styrene-butadiene rubber has pushed prices slightly higher.
It is understood that the domestic styrene-butadiene plant operating rate continued to be low in November, and the load was basically around 50%. According to data from SunSirs.com, Jilin Petrochemical's 140,000 tons per year styrene-butadiene rubber plant currently runs two lines of production. The first line produces Jihua 1500E, and the other line produces Jihua 1502. The daily output is about 260 tons. Meanwhile, Fushun Petrochemical 200,000 tons per year styrene-butadiene rubber plant has three lines in operation. Two out of three lines are producing 1502 and another line is producing 1500E. Lanzhou Petrochemical 150,000 tons per year styrene-butadiene rubber plant is operating two lines. At present, the first line is producing 1500E and the other is producing 1712. Tianjin Lugang LLC, Hangzhou Yibang LLC and Fuquan Chemical LLC wait for the styrene-butadiene rubber device to continue parking.
The price of natural rubber rose sharply in November, pulling synthetic rubber upward to a certain extent.
According to data from SunSirs.com, the price of natural rubber at the beginning of November was 11,230 RMB/ ton, and the month-end high was 12,116 RMB/ton, and the highest point was up by 7.89% from the beginning of the month.
The downstream tire output increased from the previous month, and there was a certain demand for styrene-butadiene rubber, but there was still a risk of weakening.
According to SunSirs.com, in October 2019, the output of domestic rubber tire tires was 71.289 million, a decrease of 3.28% month-on-month and an increase of 3.4% year-on-year. From January to October, the output of domestic rubber tire tires was 70.285 million, an increase of 2.5% year-on-year.
3. Market Forecasting
SunSirs' analysts believe that on the one hand, the surge in natural rubber is good for synthetic rubber. On the other hand, styrene-butadiene rubber is on the low side, which is more beneficial to styrene-butadiene rubber in the later period. It is expected that the rise of styrene-butadiene rubber will be limited in the later period.
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