SunSirs: China SBR Market Weakened and Declined in October,

According to the Commodity Market Analysis System of SunSirs, as of October 30th, the price of butadiene benzene 1502 was 12,583 RMB/ton, a decrease of 4.67% from 13,200 RMB/ton at the beginning of the month. In early October, the supply of SBR was loose, coupled with inactive downstream inquiries, resulting in light market transactions and a decline in prices; At the end of the month, on one hand, the raw material butadiene significantly increased, while on the other hand, the production of SBR slightly decreased, and the price of SBR stabilized at a low level.

In October, there was a slight fluctuation in the start of the butadiene styrene rubber plant, and in the middle to late days, the start of the plant slightly decreased. The first line of the Zhejiang Weitai butadiene styrene plant began to shut down on the 18th.

In October, the price of butadiene, the raw material for SBR, increased significantly, while the price of styrene declined due to weakness. In the first and second half of October, the cost support for SBR was weak, while in the middle and second half of October, the cost support for SBR gained some support.

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; As of October 30th, the price of styrene was at 8,658 RMB/ton, a decrease of 5.72% from 9,183 RMB/ton at the beginning of the month.

In October, the natural rubber market rose, which had a slightly greater impact on SBR. According to the Commodity Market Analysis System of SunSirs, as of October 30th, the price was at 13,150 RMB/ton, an increase of 4.86% from 12,540 RMB/ton at the beginning of the month.

Demand side: The start of tire production in October is basically stable, but the main focus is on maintaining consumption inventory for rubber. New orders are cautiously purchased, and market transactions are flat. Demand is relatively weak in the face of stable rubber support. It is understood that as of late October 2023, the operating load of all steel tires for rubber tire enterprises in Shandong region is 6.5%; The operating load of semi steel tires for domestic rubber tire enterprises is 7.3%.

SunSirs analysts believe that downstream construction is currently stable, and the supply of SBR has slightly declined. In addition, the price of raw material butadiene has significantly increased, and it is expected that the SBR market will stop falling and consolidate.

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