SunSirs: China SBR is Weak and Sorted Out after the Spring Festival

Recently (2.4-2.11), the SBR market has been consolidating weakly. According to the Commodity Market Analysis System of SunSirs, as of February 11th, the price of SBR in the East China market was 15,400 RMB/ton, a decrease of 0.43% from the pre holiday price of 15466 RMB/ton. The price of raw material butadiene has been adjusted narrowly, and the price of styrene has slightly increased, which still supports the cost of SBR. After the Spring Festival, downstream construction is still at a low level; The production of SBR has increased compared to before the holiday. The supply price of SBR is temporarily stable. As of February 11th, the mainstream market price of 1502 SBR in Fushun, Jihua, Yangzi, and Qilu in East China is around 15,250-15,500 RMB/ton.

Recently (2.4-2.11), the raw material butadiene has been processed in a narrow range, and the price of styrene has slightly increased, which still supports the cost of SBR. According to the Commodity Market Analysis System of SunSirs, as of February 11th, the price of butadiene was 12,637 RMB/ton, a decrease of 0.20% from the pre holiday price of 12,662 RMB/ton; As of February 11th, the price of styrene was 8,700 RMB/ton, an increase of 1.75% from the previous 8,550 RMB/ton.

Recently (2.4-2.11), the construction of domestic SBR plants has increased to around 82%.

Supply and demand: After the Spring Festival, downstream tire production has been low, and the atmosphere of terminal buying is flat, resulting in relatively light demand for SBR.

From a fundamental perspective, analysts from SunSirs believe that the current cost of SBR will have short-term support; The production of SBR has slightly increased, leading to increased pressure on the supply side; The Spring Festival has just passed, and downstream demand is weak, providing weak support for SBR. Overall, due to the impact of costs and supply, it is expected that the short-term market trend for SBR will mainly consolidate within a certain range.

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