SunSirs: China BR Market Fell in early November (November 1-10)

According to the data monitoring of SunSirs, the domestic BR market  fell in the first ten days of November (11.1-11.10), with the price at 11,060.00 yuan / ton at the beginning of the month, and 10,640.00 yuan / ton as of November 10, with an overall decrease of 3.8%.

In the first ten days of November, the ex-factory price of some domestic BR and petrochemical manufacturers was reduced 200 yuan / ton. As of November 10, the ex-warehouse price of Daqing BR of PetroChina Northeast sales company was 10,700 yuan / ton. Compared with the end of October, the operating rate of domestic petrochemical BR unit did not change significantly in November, and the overall operating rate was around 70%

Raw material prices slightly lower, the cost of BR support weakened. According to the monitoring of SunSirs, as of November 10, the butadiene price was 9,185 yuan / ton, slightly lower than 9,200 yuan / ton at the beginning of the month.

The start-up of downstream tire market continued to rise slightly, and the start-up of all steel tire and semi steel tire remained above 70%, and there was rigid demand for rubber.

At present, the downstream support of BR is still obvious. On the one hand, the raw material butadiene enters a short-term stable period, and the cost support strength is weakened; on the other hand, it is the correction and adjustment of the early excessive growth. On the whole, there is no short-term strong negative factor in the market, and the BR industrial chain is still in a relatively strong stage.

In the early stage, however, it is expected that the rubber price will remain high in the early stage, and the price of raw materials will remain high in the future.

Market forecast: SunSirs analysts believe that at present, the raw material butadiene price remains high, and the downstream demand has certain support, but the early rise is too fast, and the market is facing a small adjustment. It is expected that the price of BR will be high in the short term and fluctuate in a narrow range in China.

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