In June, the SBR market first rose and then fell, with a slight increase in volatility. According to the Commodity Market Analysis System of SunSirs, as of June 29th, the price of SBR in the East China market was 12,025 RMB/ton, an increase of 0.49% from 11,966 RMB/ton at the beginning of the month. The high point during the cycle was 12,208 RMB/ton, and the low point during the cycle was 11,750 RMB/ton. As of June 29th, the mainstream market price of 1502 SBR in Fushun, Jihua, Yangzi, and Qilu in East China is around 11,850-12,200 RMB/ton.

In June, the raw material butadiene market saw a significant decline, while the styrene market saw a narrow consolidation, providing some support for the cost of SBR. According to the Commodity Market Analysis System of SunSirs, as of June 29th, the price of butadiene was 9,066 RMB/ton, a decrease of 6.85% from 9,733 RMB/ton at the beginning of the month; As of June 29th, the price of styrene was 8,084 RMB/ton, a decrease of 0.25% from 8,104 RMB/ton at the beginning of the month. The high point during the cycle was 8,264 RMB/ton, and the low point during the cycle was 7,870 RMB/ton.

Demand side: In early June, the downstream tire construction started at a low level during the Loong Boat Festival holiday. After the festival, the tire construction started significantly. In the middle and late ten days, the tire construction started again slightly lower. On the whole, the downstream tire industry maintained a strong demand for SBR in June. As of June 27th, the production of semi steel tires by domestic tire companies has slightly decreased to around 71%; Around 62% of all steel tire production in Shandong tire enterprises has started.

From a fundamental perspective, analysts from SunSirs believe that the current cost of SBR still has some support; The start of production of SBR has slightly increased the pressure on the supply side; Downstream tires mainly provide rigid support for SBR. Overall, it is expected that the SBR market will consolidate weakly in the later stage.

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