SunSirs: China SBR Maket is Weak and Declining

Recently (11.1-11.11), the market for SBR has been weak and declining. According to the Commodity Market Analysis System of SunSirs, as of November 11th, the price of SBR in the East China market was 15,675 RMB/ton, a decrease of 3.04% from 16,166 RMB/ton on November 1st. The price of raw material butadiene has dropped significantly, while the price of styrene has slightly increased, and the cost center of SBR has shifted downwards. Downstream all steel tire construction and consolidation; The production of SBR has slightly increased. The supply price of SBR has been lowered, and as of November 11th, the mainstream market price of 1502 SBR in Fushun, Jihua, Yangzi, and Qilu in East China is around 15,600-15,800 RMB/ton.

Recently (11.1-11.11), the raw material butadiene has significantly decreased and the price of styrene has slightly increased, causing the cost center of SBR to shift downward. According to the Commodity Market Analysis System of SunSirs, as of November 11th, the price of butadiene was 10,937 RMB/ton, a decrease of 11.26% from 12,325 RMB/ton on November 1st; As of November 11th, the price of styrene was 8,860 RMB/ton, an increase of 0.73% from 8,796 RMB/ton on November 1st.

Supply and demand side: Downstream tire production is consolidating in a narrow range, and demand is mainly supported by the rigid demand of the SBR market. As of November 7th, the operating load of semi steel tires in domestic tire enterprises is around 79%; The operating load of all steel tires in tire enterprises in Shandong region is about 60%.

From a fundamental perspective, analysts from SunSirs believe that the current cost of SBR is decreasing; The production of SBR has slightly increased but still remains at a low level, and the pressure on the supply side of SBR is not significant; The current downstream tire production is basically stable. Overall, due to the impact of costs and supply and demand, it is expected that the SBR market will experience narrow fluctuations in the short term.

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