In November, the market of BR fell first and then stabilized. According to the data monitoring of SunSirs, the price of BR was 11,420 RMB/ ton as of November 25, down 3.79% from 11,870 RMB/ ton at the beginning of the month. At the beginning of the month, affected by the downturn in demand and the sharp drop in raw materials, the factory price of two barrels of oil BR fell continuously. The market price of BR fell 4.55% within four days. After the price of BR fell sharply, the downstream inquiries increased, and the overall market was stable.

Supply side: the commencement of BR in November decreased slightly compared with that in October, and the pressure on the supply side eased slightly. According to the business agency, Hopu and Jinzhou have a total of 90,000 t/a BR plants that continue to shut down; Zhenhua Petrochemical 100,000 t/a Shunding Plant was shut down for maintenance on November 13; The new 50,000 t/a unit of Zhejiang Chuanhua started trial operation in the middle of November, and it operated normally in the second ten day of November. Shandong Yihua 100,000 t/a plant began to produce high-quality products in late November.

On the cost side: butadiene prices fell sharply in November, while BR costs fell. According to the monitoring of SunSirs, as of November 25, the price of butadiene was 6,763 RMB/ ton, down 11.05% from 7,603 RMB/ ton at the beginning of the month.

In November, the natural rubber market fluctuated upward, and the support for BR increased. As of November 25, the price was 12,016 RMB/ ton, up 4.22% from 11,530 RMB/ ton at the beginning of the month.

Demand side: The commencement of tires in major downstream consumer industries in November was slightly lower than that in October. According to SunSirs, the commencement of all steel tires in Shandong in the middle of November was around 5.0%, and the commencement of semi steel tires was 5.9% (the commencement load in the middle of October was 5.2% and 6.5% respectively), which had weak support for SBR.

SunSirs analysts believe that although the pressure on the supply side of BR eased slightly in November, plans such as Hope and Jinzhou were restarted in the later period. In addition, Shandong Yihua has produced high-quality products, the pressure on the supply side of BR in the later period will increase again. The cost side is low and the consolidation support is weak. If the demand side does not improve in the future, BR will continue to be weak in China in December.

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