SunSirs: October Saw a Weak Decline in China NBR Market

According to the Commodity Market Analysis System of SunSirs, as of October 30th, the price was 15,062 RMB/ton, a decrease of 5.27% from 15,900 RMB/ton at the beginning of the month. In October, butadiene, the raw material for NBR, rose, while the price of acrylonitrile slightly decreased, and the cost of NBR fluctuated slightly; Downstream inquiries for NBR are on demand, and market transactions are average. In late October, the Zhenjiang Nandi nitrile plant was shut down for maintenance. Except for some brands of nitrile, the market supply was generally loose, and some enterprises' factory prices were slightly reduced. As of October 30th, the mainstream market price of Lanhua Nitrile 3305 in East China was 14,000-14,200 RMB/ton; The mainstream price of Nandi Nitrile 1052 is 17,300-17,500 RMB/ton; Shunze nitrile 3355 mainstream reported at 14,900-15,000 RMB/ton; The mainstream price of Sibul nitrile 3365 is 13,400-13,600 RMB/ton.

In October, the price of raw material butadiene increased while the price of acrylonitrile slightly decreased, providing support for the cost of NBR. According to the Commodity Market Analysis System of SunSirs, as of October 30th, the price of butadiene was 9,275 RMB/ton, an increase of 6.49% from 8,710 RMB/ton at the beginning of the month. The short-term supply side has been significantly boosted, coupled with a strong increase in supplier prices, making it difficult for the butadiene market to have low-priced supply sources to supplement; As of October 30th, the price of acrylonitrile was 9,625 RMB/ton, a decrease of 2.04% from 9,825 RMB/ton at the beginning of the month.

In October, the downstream rubber product industries such as rubber hoses, automotive parts, and thermal insulation foam started operating steadily, while the traffic management industry started operating around 60%. For the procurement of NBR, small orders were mainly based on demand, and market transactions were average. The demand support for NBR was weak.

SunSirs nitrile analysts believe that the current supply pressure on NBR has slightly weakened, but the downstream just needs to support the transaction atmosphere is average, and the high price of raw material butadiene is supported. Overall, it is expected that the NBR market will consolidate at a high level in the short term.

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