SunSirs: Narrow Consolidation of China BR Market

Last week (6.12-6.19), the market of BR was consolidated in a narrow range. According to the commodity market analysis system of SunSirs, as of June 19, the price of BR in China was 10,450 RMB/ton, down 0.19% from 10,470 RMB/ton last Monday. The price of raw butadiene fell again, and the focus of BR cost moved down; During the cycle, the ex factory price of BR supplier BR was temporarily stable, and the offer of merchants fluctuated slightly. According to the monitoring of SunSirs, as of June 19, the ex factory price of BR of Sinopec North China Sales Company was 9,900 RMB/ton. As of June 19, the mainstream market of BR in East China, such as Qilu, Yanshan, Yangzi, Dushanzi, Sichuan, Qixiang, Zhenhua, had reported 9,700-10,500 RMB/ton.

Last week (6.12-6.19), the price of raw butadiene continued to fall, and the cost focus of BR moved down. According to the Commodity Market Analysis System of SunSirs, as of June 19th, the price of butadiene was 5,873 RMB/ton, a decrease of 7.03% from last Monday's 6,317 RMB/ton.

The natural rubber market rose slightly last week (6.12-6.19), slightly supporting BR. According to the Commodity Market Analysis System of SunSirs, as of June 19th, the price of natural rubber was 11,860 RMB/ton, an increase of 1.45% from last Monday's 11,690 RMB/ton.

The recent tire operating rate has slightly increased compared to the previous period, and there is a strong demand for rubber support. It is understood that as of mid June 2023, the operating load of rubber tire enterprises in Shandong Province is 6.4% for all steel tires and around 7.8% for half steel tires.

Future market forecast: business community analysts believe that the pressure on the supply side of BR will increase due to the recent restart of some BR devices; The downstream construction started slightly, and the support for BR rubber was limited. Although the price of natural rubber was slightly supported, the inventory pressure of natural rubber remained, and the support for BR rubber was not optimistic in the short term. To sum up, China BR is expected to consolidate in the short term.

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