SunSirs: China BR Market continues to Rise slightly

Last week (7.28-8.4), the market of BR continued to rise slightly. According to the commodity market analysis system of SunSirs, as of August 4, the price of BR in East China was 11,120 RMB/ton, up 2.68% from 10,830 RMB/ton the previous Friday. The price of raw butadiene continued to rise slightly, and the cost support of BR continued to strengthen; Last week, the supply price of BR was raised by 200 RMB/ton, and the offer of merchants kept up. According to the monitoring of the business community, as of August 4, the ex factory price of BR of Sinopec North China Sales Company was 11,100 RMB/ton. As of August 4, the mainstream market of BR in East China, such as Qilu, Yanshan, Yangzi, Dushanzi, Sichuan, Qixiang, Zhenhua, etc., reported 10,900-11,400 RMB/ton.

Last week (7.28-8.4), the domestic BR plant started steadily. Daqing Petrochemical BR restarted at the end of July, and Zhejiang Petrochemical BR plant plans to restart in the near future. The supply pressure of BR increased slightly compared with the previous period.

Last week (7.28-8.4), the price of raw butadiene continued to rebound, and the cost focus of BR continued to rebound. According to the Commodity Market Analysis System of SunSirs, as of August 4th, the price of butadiene was 7,376 RMB/ton, an increase of 2.43% from last Friday's 7,201 RMB/ton.

Last week (7.28-8.4), the natural rubber market fluctuated slightly. According to the Commodity Market Analysis System of SunSirs, as of August 4th, the price of natural rubber was 11,944 RMB/ton, a decrease of 0.13% from last Friday's 11,960 RMB/ton, and the highest point in the cycle was 12,080 RMB/ton.

Recently, the tire operating rate has fluctuated slightly, with half steel tire operating slightly lower than the previous period, and all steel tire operating slightly fluctuating compared to the previous period. The demand for rubber rigid support is stable. It is understood that as of early August 2023, the operating load of rubber tire enterprises in Shandong Province was 5.8% for all steel tires and around 7.2% for half steel tires.

SunSirs analysts believe that the high raw material price of BR is supported by its cost. BR started steadily last week, but there were plans to restart devices later, and the supply of BR was basically loose; The downstream semi steel tire was slightly lower, and the support for BR rubber was slightly weaker; To sum up, it is expected that in the short term, BR will fluctuate in a narrow range after the rise of the cost supported price, and it may fall slightly in the middle of the month. If the downstream construction starts after the rainy season, if it actively improves, the price of BR will continue to rise.

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