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SunSirs: Weak Demand and Downward Cost, China SBR Market is Weak
June 29 2023 14:03:35SunSirs(Selena)

In June, the market of SBR was weak and fluctuated. According to the Commodity Market Analysis System of SunSirs, as of June 27th, the price of butadiene benzene 1502 was 11,233 RMB/ton, a decrease of 0.96% from 11,341 RMB/ton at the beginning of the month; The low point of the cycle is 11,116 RMB/ton, and the high point is 11,241 RMB/ton. The price of raw material butadiene and styrene fell, and the focus of SBR cost moved down; In June, the construction of downstream tire factories declined slightly, and the support for SBR weakened; In June, the turnover of SBR market was flat, the factory price of SBR was reduced by 400 RMB/ton at the beginning of the month, and the market offer was slightly consolidated.

In June, the commencement of SBR slightly declined, and the supply side slightly decreased compared with the previous period; Qilu Petrochemical temporarily shut down the front line of 230,000 t/a styrene butadiene rubber plant, and Lanzhou Petrochemical shut down the 150,000 t/a SBR plant for maintenance on June 11; In addition, the 140,000 ton unit of Jilin Petrochemical was restarted on the first line at the beginning of the month, and the 100,000 ton/year unit of Yangzi Petrochemical was restarted to normal operation from June 19th.

According to the Commodity Market Analysis System of SunSirs, as of June 27th, the price of butadiene was 5,817 RMB/ton, a decrease of 12.01% from 6,612 RMB/ton at the beginning of the month; On the one hand, the production of some maintenance devices in the early stage of butadiene has increased, while imported cargo has gradually arrived at the port, putting pressure on the market supply side; On the other hand, the external market of butadiene continues to decline, which has a certain drag on the domestic spot market.

As of June 27th, the price of styrene was 7,300 RMB/ton, a decrease of 6.59% from 7,815 RMB/ton at the beginning of the month; The price of styrene has mainly declined in the past three months, and the market has continued to decline last week. The pure benzene market has declined, with poor cost support. Currently, downstream demand is mainly maintained, and spot transactions are poor. Before and after the holiday, the market replenishment situation is not as expected. Overall, the styrene market is in a downward trend.

In June, the natural rubber market rose slightly, but the price was still low, which did not significantly support SBR. According to the Commodity Market Analysis System of SunSirs, as of June 27th, the price was at 11,700 RMB/ton, an increase of 0.86% from 11,600 RMB/ton at the beginning of the month, and the highest point in the cycle was 11,870 RMB/ton; Natural rubber inventory pressure still exists, as of mid June, the bonded inventory of natural rubber samples in Qingdao increased by 12,000 tons to 136,100 tons compared to the previous period, an increase of 0.88%. The total inventory is 921,100 tons, an increase of 3,200 tons compared to the previous period.

Demand side: The tire operating rate slightly decreased in June, which has a strong demand for rubber support but has weakened compared to the previous period. It is understood that as of late June 2023, the operating load of all steel tires for rubber tire enterprises in Shandong region is 5.8%; The operating load of semi steel tires in domestic rubber tire enterprises is 70%; The overall decline compared to the start of the month.

SunSirs analysts believe that it is difficult to significantly improve the downstream commencement in the short term, but the supply side of SBR has slightly decreased, and the supply and demand side of SBR market has some weak support. In the future, if the equipment maintenance continues to expand, the market of SBR is expected to stop falling and rise.

 

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

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