SunSirs: China SBR Market slightly increased in August

The market for SBR slightly increased in August. According to the Commodity Market Analysis System of SunSirs, as of August 30th, the price of butadiene benzene 1502 was at 12,091 RMB/ton, an increase of 2.83% from 11,758 RMB/ton at the beginning of the month. The raw material butadiene continues to rise, the price of styrene fluctuates narrowly, and the cost center of styrene rubber rebounds slightly; Downstream tire factories started operating slightly in August compared to July, which continued to provide strong support for SBR; At the end of August, the factory price of SBR was increased by 200 RMB/ton. As of August 30th, the price of Jilin Petrochemical styrene butadiene 1502 Northeast Warehouse, a subsidiary of PetroChina Northeast Sales Company, was increased by 12,100 RMB/ton. The domestic SBR 1502 market quotation range is around 12,000-12,300 RMB/ton.

In August, the price of butadiene, the raw material for SBR, increased, and the price of styrene narrowed, causing a slight upward shift in the cost center of SBR.

According to the Commodity Market Analysis System of SunSirs, as of August 30th, the price of butadiene was 7,626 RMB/ton, an increase of 5.90% from 7,201 RMB/ton at the beginning of the month; As of August 30th, the price of styrene was 8,675 RMB/ton, a decrease of 0.72% from 7,737 RMB/ton at the beginning of the month.

The natural rubber market in August was weak and volatile, with a bearish impact on SBR. According to the Commodity Market Analysis System of SunSirs, as of August 30th, the price was 12,000 RMB/ton, a decrease of 0.08% from 12,010 RMB/ton at the beginning of the month, and the low point during the cycle was 11,764 RMB/ton.

Demand side: The tire operating rate in August slightly increased compared to July, which continues to provide strong support for rubber. It is understood that as of late August 2023, the operating load of all steel tires for rubber tire enterprises in Shandong region is 6.4%; The operating load of semi steel tires for domestic rubber tire enterprises is 7.2%.

Future Forecast: SunSirs analysts believe that downstream construction has slightly increased compared to July, providing support for the SBR market. However, the cost side is expected to operate at a high level during the expected stage, and overall, it is expected that the SBR market will consolidate at a high level and narrow range in the short term.

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