The SBR market fluctuated slightly higher in July. According to the Commodity Market Analysis System of SunSirs, as of July 31, the price of SBR in the East China market was 12,283 RMB/ton, an increase of 2.15% from 12,025 RMB/ton at the beginning of the month. The high point during the cycle was 12,366 RMB/ton, and the low point during the cycle was 11,883 RMB/ton. As of July 31st, the mainstream market price of 1502 SBR in Fushun, Jihua, Yangzi, and Qilu in East China is around 12,100-12,450 RMB/ton.

In July, the raw material butadiene market rose while the styrene market weakened and declined, providing some support for the cost of SBR. According to the Commodity Market Analysis System of SunSirs, as of July 31st, the price of butadiene was 9,300 RMB/ton, an increase of 3.33% from the 9,000 RMB/ton at the beginning of the month; As of July 31st, the price of styrene was 7694 RMB/ton, a decrease of 4.26% from 8,036 RMB/ton at the beginning of the month.

In July, the domestic SBR plant started construction steadily, and as of the end of July, the domestic SBR plant had started construction at around 7.3%.

Demand side: Downstream tire production slightly increased in July, and domestic tire companies' semi steel tire production slightly increased from 70% at the beginning of the month to around 75% at the end of the month; The construction of all steel tires by tire companies in Shandong has increased from 62% to around 65% by the end of the month. Mainly providing rigid support for SBR.

From a fundamental perspective, analysts from SunSirs believe that the current cost of SBR still has some support; There is currently no maintenance plan for the SBR plant in the short term; Downstream tires mainly provide rigid support for SBR. Overall, it is expected that the SBR market will fluctuate and consolidate in the later stage.

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