The national styrene butadiene rubber (SBR) market in this week (2.3-2.7) declined in a weak way, with the price at the beginning of the week at 11440 RMB / ton and the weekend price at 11180 RMB / ton, down 2.27% overall.

Influencing Factor 1: Stable Ex-Factory Price of Petrochemicals

This week (February 3-7)), the ex-factory price of domestic SBR petrochemical manufacturers fell. As of February 7, Sinopec North China sales company Qilu 1502 reported 10800 RMB / ton, Qilu 1712 reported 9600 RMB/ ton, and this is ex-factory price of North China.

Influencing Factor 2: Weakening Raw Martial Price Gave Less Support from Cost Side

the price of butadiene was low, and the support for SBR was weakened. The price of butadiene at the beginning of the week was 8056 RMB/ ton, while the price of butadiene at the end of the week was 7773 RMB / ton, slightly down 3.51%.

Influencing Factor 3: Block Traffic and Delayed Operation 

During the Spring Festival, the provincial and municipal governments issued the notice of delaying the resumption of work for the enterprises. It is reported that the resumption of work for the tire enterprises is delayed accordingly, most of which are initially scheduled to be on February 10 (the 17th day of the first month of the lunar calendar). Due to the delayed resumption of work in the downstream and the traffic jam caused by the prevention and control of new coronavirus, the overall market demand is light.

Market Forecasting 

SunSirs analysts believe that at present, the price of raw materials is low. On the other hand, downstream demand is light. It is expected that the overall performance of the market in the later period is light and the price is weak.

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