SunSirs: China BR Market slightly Declined

Recently (7.15-7.25), the market of BR declined slightly. According to the commodity market analysis system of SunSirs, as of July 25, the price of BR in East China was 10,770 RMB/ton, down 0.55% from 10,830 RMB/ton in the middle of the month. The price of raw butadiene continues to rise, and the cost of BR is supported; In the near future, the supply price of BR has remained stable, and the offer of merchants has risen in the early stage and then dropped slightly. According to the monitoring of SunSirs, as of July 25, the ex factory price of BR of Sinopec North China Sales Company had reported 10,700 RMB/ton. As of July 25, the mainstream market of BR in East China, such as Qilu, Yanshan, Yangzi, Dushanzi, Sichuan, Qixiang, Zhenhua, had reported 10,300-10,900 RMB/ton.

Recently (7.15-7.25), the low price of raw butadiene continued to rebound, and the cost focus of BR rebounded. According to the Commodity Market Analysis System of SunSirs, as of July 25th, the price of butadiene was 7,143 RMB/ton, an increase of 5.35% from 6,781 RMB/ton in the middle of the month.

Recently (7.15-7.25), the natural rubber market declined slightly, and support for BR weakened. According to the Commodity Market Analysis System of SunSirs, as of July 25th, the price of natural rubber was 11,870 RMB/ton, a decrease of 2.30% compared to 12,150 RMB/ton in the middle of the month.

In the recent period (7.15-7.25), the tire operating rate has fluctuated slightly, with half steel tire operating slightly higher than the previous period, and all steel tire operating slightly lower than the previous period. The demand for rubber rigid needs is supported steadily. It is understood that as of mid July 2023, the operating load of rubber tire enterprises in Shandong Province is 6.3% for all steel tires and around 7.3% for half steel tires.

SunSirs analysts believe that the cost of BR is supported by the soaring raw material prices. The pressure of BR supply surface increases slightly when multiple devices are restarted; The downstream commencement fluctuates slightly, which is stable for BR support; To sum up, it is expected that BR will consolidate after rising in the short term. In the medium and long term, if the cost and demand continue to support, BR may have the opportunity to continue to rise.

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