SunSirs: China SBR Market has slightly increased

Last week (8.21-8.28), the SBR market slightly increased. According to the Commodity Market Analysis System of SunSirs, as of August 28th, the price of SBR in the East China market was 11,933 RMB/ton, an increase of 0.07% from the previous Monday's 11,925 RMB/ton. The factory price of SBR remained stable during the week. According to the Commodity Market Analysis System of SunSirs, as of August 28th, Sinopec North China Sales Company reported a factory price of 11,800 RMB/ton for Qilu styrene butadiene 1502. During the week, the prices of raw materials such as butadiene and styrene remained high, while the cost of SBR continued to support; Downstream tire production is basically stable, and support for SBR is just needed. The basic operation of the SBR industry chain is stable and consolidated. As of August 28th, the mainstream offer for SBR 1502 in the East China market is between 11,800 and 12,200 RMB/ton.

Last week (8.21-8.28), the prices of raw materials butadiene and styrene remained high, and the cost of SBR continued to be supported. According to the Commodity Market Analysis System of SunSirs, as of August 29th, the price of butadiene was 7,618 RMB/ton, an increase of 0.07% from last Monday's 7,613 RMB/ton. As of August 28th, the price of styrene was 8,700 RMB/ton, an increase of 0.58% from last Monday's 8,650 RMB/ton.

Last week (8.21-8.28), the natural rubber market slightly increased, but it is still within the range, with a relatively short impact on SBR. According to the Commodity Market Analysis System of SunSirs, as of August 29th, the price of natural rubber was 11,940 RMB/ton, an increase of 0.84% from last Monday's 11,840 RMB/ton.

Last week, the tire production rate was temporarily stable, with stable support for rubber rigid demand. It is understood that as of late August 2023, the operating load of rubber tire enterprises in Shandong Province is 6.4% for all steel tires and around 7.2% for half steel tires.

SunSirs analysts believe that the cost of SBR will continue to support, and downstream demand will have a certain level of demand support. The supply of SBR will ease with the expected pressure of Shenhua device maintenance, but the narrow consolidation of natural rubber market will not be able to support SBR. It is expected that the price of SBR will narrow in the future.

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