SunSirs: In March, the Market for SBR Was Weak and Declined

Price trend

In March, the market for SBR was weak and declined. According to data monitoring from SunSirs, as of March 31, the price of SBR 1502 was 11,341 RMB/ton, a decrease of 5.94% from the price of 12,058 RMB/ton at the beginning of the month.

Analysis review

The price of raw material butadiene had significantly decreased, while the price of styrene consolidated narrowly, and the cost support weakened. In March, the start of downstream tire factories fluctuated slightly, and the new demand for SBR was weak. In late March, the market turnover was light, the ex factory price of SBR was significantly reduced, and the market price of SBR was lower.

In March, the production of SBR fluctuated slightly, and the supply of SBR remained basically stable.

In March, the price of butadiene, the raw material for SBR, significantly decreased, and the price of styrene narrowed, resulting in a downward trend in the cost of SBR. According to monitoring by SunSirs, as of March 31, the price of butadiene was 8,551 RMB/ton, a decrease of 11.96% from the price of 9,712 RMB/ton at the beginning of the month. As of March 31st, the price of styrene was 8,458 RMB/ton, a decrease of 1.17% from the price of 8,558 RMB/ton at the beginning of the month.

The natural rubber market fell in March, which had a bearish impact on SBR. As of March 31st, the price was at 11,525 RMB/ton, a decrease of 4.11% from the price of 12,020 RMB/ton at the beginning of the month.

Demand side: The operating rate of downstream tire companies in March temporarily remained around 70%, and there was no significant increase in demand for SBR. In addition, with the low price of natural rubber, SBR had no obvious advantage, and the demand for SBR in March was mainly weak.

Market outlook

Analysts from SunSirs believe that there is currently no significant improvement in downstream construction in the short term, and the demand for SBR is expected to be weak. In addition, the supply side is expected to change little in April, but multiple oil producing countries are jointly reducing production, and it is expected that crude oil prices will operate at high levels. SBR may receive cost support, and it is expected that the SBR market will fluctuate widely in April.

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