In September, the SBR market rose in the early stage, but fell from its high point at the end of the month. According to the Commodity Market Analysis System of SunSirs, as of September 28th, the price of butadiene benzene 1502 was at 13,200 RMB/ton, an increase of 9.17% from 12,091 RMB/ton at the beginning of the month, and a decrease of 3.18% from the high point of 13,633 RMB/ton within the month.

In the first half of the month, the overall prices of raw materials butadiene and styrene have significantly increased, and the cost support for SBR is strong. The factory price of SBR has continuously increased significantly, and the market price of SBR has risen; Starting from the middle of the month, the price of raw material styrene began to decline, and the support for styrene butadiene slightly weakened. However, downstream tire factories started operating steadily. In addition, tire enterprises are centralized in dual sector stocking, and demand for SBR forms support. The SBR market is operating at a high level; At the end of the month, on the one hand, the price of raw material styrene continued to decline, and the price of butadiene also began to decline. The cost support for SBR once again weakened. On the other hand, approaching the end of the dual reserve period, market transactions were light, and the main suppliers of SBR continuously lowered their factory prices. As a result, the high market price of SBR declined. As of September 28th, the Northeast Warehouse of Jilin Petrochemical Butadiene 1502, a subsidiary of PetroChina Northeast Sales Company, has raised its price to 13,000 RMB/ton, and the domestic market quotation range for Butadiene Rubber 1502 is around 13,000 to 13,400 RMB/ton.

In September, the price of butadiene, the raw material for SBR, rose sharply and then stabilized, while the price of styrene rose first and then fell. The overall cost center of SBR in September shifted upwards.

According to the Commodity Market Analysis System of SunSirs, as of September 28th, the price of butadiene was 8,710 RMB/ton, an increase of 14.21% from 7,626 RMB/ton at the beginning of the month; As of September 28th, the price of styrene was 9,183 RMB/ton, an increase of 4.99% from the beginning of the month at 8,746 RMB/ton, and a decrease of 5.97% from the month's high of 9,766 RMB/ton.

In September, the natural rubber market first rose and then fell, but overall it was lower than the price level of SBR, which had a negative impact on SBR. According to the Commodity Market Analysis System of SunSirs, as of September 28th, the price was at 12,540 RMB/ton, an increase of 1.24% from 12,386 RMB/ton at the beginning of the month, and a decrease of 2.64% from the high point of 12,880 RMB/ton within the month.

Demand side: The overall stability of tire production in September has continued to demand support for rubber, and tire companies are stocking up before holidays in the middle of the month, resulting in a certain increase in rubber demand. It is understood that as of late September 2023, the operating load of all steel tires for rubber tire enterprises in Shandong region is 6.4%; The operating load of semi steel tires for domestic rubber tire enterprises is 7.2%.

Future Market Forecast: SunSirs analysts believe that downstream construction is basically stable, and the supply of SBR is basically stable. However, the cost side has slightly decreased in the short term, but may fluctuate significantly later due to the impact of crude oil prices. Overall, it is expected that the SBR market will remain high and weak in the short term. If international crude oil continues to rise significantly after the holiday, SBR may rise again due to cost support.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.