The market for SBR was weak and slightly declined in March. According to the Commodity Market Analysis System of SunSirs, as of March 28th, the price of SBR in the East China market was 14,000 RMB/ton, a decrease of 3.78% from 15,550 RMB/ton at the beginning of the month. The prices of raw materials butadiene and styrene have weakened, and the cost support for SBR has weakened. Downstream tire production slightly increased compared to February and remained stable in March, providing strong support for the demand for SBR; The production of SBR has slightly decreased compared to February. The market quotation is weak and declining. As of the 28th, the mainstream market price of 1502 SBR in Fushun, Jihua, Yangzi, and Qilu in East China is around 13,850-14,250 RMB/ton.
In March, the prices of raw materials butadiene and styrene weakened, and the cost support for SBR weakened. According to the Commodity Market Analysis System of SunSirs, as of March 28th, the price of butadiene was 11,000 RMB/ton, a decrease of 4.03% from 11,462 RMB/ton at the beginning of March; As of March 28th, the price of styrene was 8,294 RMB/ton, a decrease of 4.12% from 8650 RMB/ton at the beginning of the month.
Supply and demand side: Downstream tire production is basically stable, mainly supporting the rigid demand of the SBR market. As of March 21st, the operating load of semi steel tires in domestic tire enterprises is around 83%; The construction of all steel tires by tire enterprises in Shandong region has slightly increased to around 69% of the load.
From a fundamental perspective, analysts from SunSirs believe that the current cost support for SBR is relatively weak; Small fluctuations in the production of SBR; The downstream tire production is basically stable, providing strong support for SBR. Overall, due to the impact of costs and supply and demand, it is expected that the short-term market for SBR will mainly experience a narrow consolidation.
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