Cost support weakened, leading to a weak downward trend in the September SBR market. According to the Commodity Market Analysis System of SunSirs, as of September 29th, the price of SBR in the East China market was 12,000 RMB/ton, a decrease of 3.23% from 12,500 RMB/ton at the beginning of the month. As of September 29th, the mainstream market price of 1502 SBR in Fushun, Jihua, Yangzi, and Qilu in East China is around 11,900-12,150 RMB/ton.

In September, the prices of raw materials butadiene and styrene weakened and declined, and the cost center of SBR shifted downwards. According to the Commodity Market Analysis System of SunSirs, as of September 29th, the price of butadiene was 8,900 RMB/ton, a decrease of 4.47% from 9,316 RMB/ton at the beginning of the month; As of September 29th, the price of styrene was 7,124 RMB/ton, a decrease of 5.14% from 7,510 RMB/ton at the beginning of the month.

On the demand side, downstream tire production in September remained stable with a slight increase, providing essential support for the SBR market. As of September 28th, the construction of semi steel tires by domestic tire companies has started at around 73%; The construction of all steel tires by tire companies in Shandong Province has slightly increased to around 66%.

From a fundamental perspective, analysts from SunSirs believe that the current supply of raw materials such as butadiene and styrene is sufficient, and the expected cost support for SBR is weak; The production of SBR is basically stable; The downstream tire industry provides strong support for SBR. Overall, it is expected that the SBR market will fluctuate and consolidate in the later stage.

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