Price trend

In March, the domestic SBR market rose slightly. According to the data monitoring of SunSirs, as of March 31, the price of SBR 1502 was 12,691 RMB/ton, a slight increase of 2.42% from the price of 12,391 RMB/ton at the beginning of the month.

Analysis review

According to the understanding of SunSirs, in late March, Li Changrong and Zhejiang Weitai had a total of 150,000 tons/year of SBR plants temporarily shut down, Jilin Petrochemical operated at a reduced rate, and the domestic SBR supply pressure decreased at the end of the month. In addition, Shenhua Chemical's 170,000-ton benzene-butadiene plant has an overhaul plan in April, and the supply side is expected to decline again. It will be good for the late SBR market.

In March, the raw material butadiene rose sharply, styrene rose slightly, and the cost had support for SBR. Butadiene foreign plants enter the maintenance season, and the tight market supply pushes butadiene to remain high. According to the monitoring of SunSirs, as of March 31, the price of butadiene was 10,708 RMB/ton, an increase of 28.02% from the price of 8,365 RMB/ton at the beginning of the month.

In March, the international crude oil price rose first and then fell. In addition, the maintenance of styrene units such as Hanwha Total Petrochemical in South Korea and Yanchang in China, formed a certain support for the price of styrene. As of March 31, the price of styrene was 9,350 RMB/ton, up 4.59% from the price of 8,940 RMB/ton at the beginning of the month.

In March, the natural rubber market fluctuated weakly. As of March 31, the price was 13,190 RMB/ton, an increase of 1.00% from the price of 13,060 RMB/ton at the beginning of the month; the high point of the month was 13,480 RMB/ton, and the low point was 12,780 RMB/ton.

The operating rate of downstream tires wass differentiated, and the operating rate of semi-steel tires had increased significantly, but the operating rate of all-steel tires had been sluggish. It is understood that the operating rate of the domestic semi-steel tire production line was reported to be 72.2%, while the operating rate of the all-steel tire production line was reported to be 56.6%. In addition, data from the General Administration of Customs shows that in February 2022, 35.05 million new pneumatic rubber tires were exported, a year-on-year decrease of 15.6%; from January to February 2022, 90.37 million new pneumatic rubber tires were exported, a year-on-year decrease of 0.6%.

Market outlook

SunSirs analysts believe that the supply side is expected to be tight in the later period, and the cost side of butadiene still has strong support, but the demand is slightly weaker, and it is expected that SBR will consolidate in the later period.

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