SunSirs: The High Price of BR has slightly Declined

Recently (9.15-9.22), the spot market price of BR has slightly declined from its high point. According to the Commodity Market Analysis System of SunSirs, as of September 22, the market price of BR in East China was 13,660 RMB/ton, a decrease of 1.16% from last Friday's 13,820 RMB/ton.

The price of raw material butadiene is running at a high level, and the cost support for BR is still strong. In addition, the overall inventory pressure of BR is not high, and coupled with stable downstream construction and high demand support, the supply price of BR is strong. However, on the one hand, the pre holiday stocking has basically ended, and the market atmosphere is gradually wait-and-see. On the other hand, downstream resistance towards high priced sources has increased. Later this week, the market quotation for BR has adjusted downwards. As of September 22, the mainstream price for domestic BR market is 13,400-13,900 RMB/ton, while the mainstream price for private BR in East China is 12,600-13,000 RMB/ton.

Recently (9.15-9.22), the butadiene market has been operating at a high level, and there is still support for the cost of BR. According to the Commodity Market Analysis System of SunSirs, as of September 22, the price of butadiene was 8,747 RMB/ton, an increase of 1.01% from last Friday's 8,660 RMB/ton.

Demand side: The operating rate of tires is basically stable, with rubber as the main support. It is understood that as of mid September 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 in domestic rubber tire enterprises is 7.2%, which forms a certain support for BR.

Analysts from SunSirs believe that the high price of BR raw materials is running high and there is not much supply pressure. Although downstream companies just need support, they have a resistance attitude towards high priced BR. It is expected that the spot market of BR will maintain a high level of consolidation in the short term.

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