SunSirs: China SBR Market Continues to be Weak in November

In November, the SBR market was weak and fell. According to the Commodity Market Analysis System of SunSirs, as of November 30th, the price of butadiene benzene 1502 was 11,841 RMB/ton, a decrease of 5.89% from 12,583 RMB/ton at the beginning of the month. In November, the supply of styrene butadiene rubber was loose, with downstream tire production increasing in the early stage and styrene butadiene rubber receiving demand support. In the later stage, downstream inquiries were wait-and-see, and market transactions were flat; At the end of the month, the high price of raw material butadiene decreased, and the overall price of styrene declined. The cost support for SBR gradually weakened, and the overall price of SBR declined.

In October, the price of butadiene, a raw material for styrene butadiene rubber, was strong in the early stage and fell at the end of the month. The price of styrene was weak and fell, and the cost support for styrene butadiene rubber gradually weakened.

According to the Commodity Market Analysis System of SunSirs, as of November 30th, the price of butadiene was 9125 RMB/ton, a decrease of 4.11% from 9,516 RMB/ton at the beginning of the month; As of November 30th, the price of styrene was 8,416 RMB/ton, a decrease of 4.17% from 8,783 RMB/ton at the beginning of the month.

In October, the natural rubber market first rose and then fell, providing slightly stronger support for styrene butadiene rubber in the early stage. According to the Commodity Market Analysis System of SunSirs, as of November 30th, the price was 12,850 RMB/ton, a decrease of 0.08% from the beginning of the month's 12,860 RMB/ton, and the highest point in the cycle was 13,160 RMB/ton.

Demand side: Tire production in November slightly increased compared to October, providing some essential support for rubber. However, as tires enter the off-season at the end of the year, tire factory production expectations are expected to decrease, and support for rubber may weaken in the future. It is understood that as of late November 2023, the operating load of all steel tires in rubber tire enterprises in Shandong region was 64%; The operating load of semi steel tires in domestic rubber tire enterprises is 78%.

SunSirs analysts believe that downstream production is generally stable, but expectations are expected to decrease in the later stage. The supply of SBR has slightly declined, and the price of raw material butadiene styrene has declined. It is expected that the SBR market will remain weak in the later stage.

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