SunSirs: China SBR Market is Weak and Declining in November

The SBR market experienced a weak downward trend in November. According to the Commodity Market Analysis System of SunSirs, as of November 29th, the price of SBR in the East China market was 14,650 RMB/ton, a decrease of 9.38% from 16,166 RMB/ton at the beginning of the month. The price of raw material butadiene has significantly decreased, and the cost support for SBR has weakened. The downstream tire production is basically stable, providing strong support for the demand for SBR; The production of SBR has slightly increased, and the inventory pressure of enterprises has slightly increased. The supply price of SBR has been gradually lowered within the month, and as of the 29th, the mainstream market price of SBR in East China is 14,500-14,900 RMB/ton.

In November, the price of raw material butadiene significantly decreased, while the price of styrene slightly increased, resulting in a weakened overall cost support for SBR. According to the Commodity Market Analysis System of SunSirs, as of November 29th, the price of butadiene was 9,725 RMB/ton, a decrease of 21.10% from 12,325 RMB/ton at the beginning of November; As of November 29th, the price of styrene was 8,900 RMB/ton, an increase of 1.18% from 8796 RMB/ton at the beginning of the month.

Supply and demand side: Since November, downstream tire production has remained stable with slight fluctuations, and demand is supported by the rigid demand of the SBR market. As of November 29th, 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 59%.

From a fundamental perspective, analysts from SunSirs believe that the current cost support for SBR has significantly weakened; The production of SBR has slightly increased, and the pressure on the supply side of SBR has slightly increased; At present, the downstream tire production is stable with slight fluctuations, and overall, the SBR market is mainly consolidating weakly in the short term.

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