SunSirs: China SBR Market was Weak and Fell (August 9 - 16)

From August 9 to 16, the market price of SBR declined weakly. According to the monitoring of SunSirs, as of August 16, the domestic SBR price was 11,741 RMB/ ton, down 1.19% from 11,883 RMB/ ton last Tuesday. This week, the ex factory price of SBR in petrochemical enterprises was reduced by 200 RMB/ ton. According to the monitoring of SunSirs, as of August 16, the ex factory price of Fushun SBR 1502 of PetroChina East China sales company was reported to be 11,500 RMB/ ton. The air atmosphere was strong in the market, and some merchants reduced their offers. As of August 16, the market price of SBR 1502 was 11,600-11,900 RMB/ ton.

On one hand, the raw materials butadiene and styrene have dropped significantly since August, and the cost has weakened; On the other hand, the low demand side of downstream operation is weak. It is understood that the current operating rate of all steel tires is around 55%, and the operating rate of semi steel tires is around 65%. Demand side support is weak.

Since August, the butadiene and styrene markets have shown a downward trend, and the cost of SBR has weakened. According to the monitoring of business agency, as of August 16, the price of butadiene was 7,792 RMB/ ton, down 16.71% from 9,356 RMB/ ton at the beginning of the month; As of August 16, the price of styrene was 8,670 RMB/ ton, down 9.88% from 9,620 RMB/ ton at the beginning of the month.

The natural rubber market fluctuated slightly, and the support for SBR was not strong. According to the monitoring of SunSirs, as of August 16, the price of natural rubber was 12,060 RMB/ ton, down 1.47% from 12,240 RMB/ ton at the beginning of the month.

Market forecast: SunSirs analysts believe that the price of raw materials has dropped and the cost of SBR has dropped. In addition, the low demand of downstream construction is weak in the support of SBR. It is expected that SBR will still be weak in China in the later period.

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