Price trend

The supply side continued to loosen and downstream demand was weak, and the price of SBR fell weakly in April. According to the data monitoring of SunSirs, as of April 30, the price of SBR 1502 was 11,891 RMB/ton, down 6.79% from the price of 12,758 RMB/ton at the beginning of the month.

Analysis review

According to the understanding of SunSirs, although the SBR plants of Jihua, Fushun and Shenhua all operated at a reduced rate in April, the supply side was still loose, and the impact on the SBR market was bearish.

In April, butadiene fell sharply, styrene rose slightly, and raw material prices rose and fell, which weakened the support for SBR. According to the monitoring of SunSirs, as of April 30, the price of butadiene was 9,816 RMB/ton, down 8.45% from the price of 10,722 RMB/ton at the beginning of the month.

In April, the international crude oil price fluctuated higher, driving the price of pure benzene higher, forming a certain support for the price of styrene. As of April 30, the price of styrene was 9,625 RMB/ton, up 3.22% from the price of 9,325 RMB/ton at the beginning of the month.

In April, the natural rubber market was weak and lower. As of April 30, the price was 12,512 RMB/ton, down 4.56% from the price of 13,110 RMB/ton at the beginning of the month.

In April, the start of downstream tire construction gradually decreased, and the demand for SBR weakened. It is understood that as of late April, the domestic semi-steel tire production line started at 67.4%. In addition, data from the General Administration of Customs shows that in March 2022, 47.27 million new pneumatic rubber tires were exported, a year-on-year decrease of 7.3%; from January to March 2022, 137.63 million new pneumatic rubber tires were exported, a year-on-year decrease of 3.0%.

Market outlook

SunSirs’ analysts believe that the supply side is loose, costs and demand are slightly weaker, and it is expected that SBR will continue to be weak in the later period.

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