SunSirs: China SBR Market was Weak

Last week (11.20-11.27), the SBR market was weak and consolidated. According to the Commodity Market Analysis System of SunSirs, as of November 27th, the price of SBR in the East China market was 11,816 RMB/ton, a slight decrease of 0.28% from the previous Monday's 11,850 RMB/ton. During the cycle, the ex factory price of SBR has remained stable. According to the commodity market analysis system of SunSirs, as of November 27th, Sinopec North China Sales Company's Qilu butadiene styrene 1502 ex factory report was 11,600 RMB/ton.

Last week (11.20-11.27), the price of raw material butadiene remained high, while the price of styrene slightly decreased. There is still some support for the cost of SBR. According to the commodity market analysis system of SunSirs, as of November 27th, the price of butadiene was at 9,538 RMB/ton, a decrease of 0.03% from the previous Monday's 9,541 RMB/ton, and the low point in the cycle was 9,493 RMB/ton; As of November 27th, the price of styrene was 8,595 RMB/ton, a decrease of 1.86% from the previous Monday's 8,758 RMB/ton.

Demand side: Last week (11.20-11.27), tire production started with a slight increase in all steel tires, providing some support for rubber. But currently, the demand for tires is gradually entering the off-season at the end of the year, and tire companies are gradually accumulating inventory. The expectation of tire production in the later stage will decrease, and the impact on rubber is biased. It is understood that as of late November 2023, the operating load of all steel tires in rubber tire enterprises in Shandong region was 640%; The operating load of semi steel tires in domestic rubber tire enterprises is 7.8%.

Market forecast: SunSirs analysts believe that the cost of SBR will continue to support, but downstream production is expected to decline in the later stage, coupled with the overall loose supply of SBR in the later stage, it is expected that the price of SBR will be weak and consolidate in the later stage.

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