SunSirs: China NBR Market first Fell and then Rose in December

In December, the NBR market first fell and then rose, with an overall decline. According to the Commodity Market Analysis System of SunSirs, as of December 29th, the price was 14,475 RMB/ton, a decrease of 1.36% from 14,675 RMB/ton at the beginning of the month, and the low point in the cycle was 14,300 RMB/ton. In December, the raw material of NBR, butadiene, experienced a significant decline in the early stage and a slight rebound in the later stage. The overall price of acrylonitrile fell narrowly, and the overall cost center of NBR decreased; Downstream inquiries for NBR are on demand, and market transactions are average. The overall stable operation of the NBR plant and the overall loose supply side of the nitrile market. After an accident at the end of the month at Qilu Petrochemical's olefin plant, some nitrile enterprises increased their factory prices, and the market offer slightly increased, but market transactions remained mainly flat. As of December 29th, the mainstream market price of Lanhua Nitrile 3305 in East China is 14,000-14,100 RMB/ton; The mainstream price of Nandi Nitrile 1052 is 16,000-16,300 RMB/ton; Shunze nitrile 3355 mainstream reported at 14,300-14,500 RMB/ton; The mainstream price of Cebu nitrile 3365 is 13,400-13,600 RMB/ton.

In December, the price of raw material butadiene fell significantly in the early stage and rebounded at the end of the month, while the price of acrylonitrile fell narrowly. The cost support for NBR weakened. According to the commodity market analysis system of SunSirs, as of December 29th, the price of butadiene was 8,575 RMB/ton, a decrease of 6.03% from 9,125 RMB/ton at the beginning of the month, and the low point in the cycle was 8,058 RMB/ton; As of December 29th, the price of acrylonitrile was 9,812 RMB/ton, a decrease of 1.88% from 10,000 RMB/ton at the beginning of the month.

In December, the downstream rubber product industry, such as rubber hoses, automotive parts, and thermal insulation foam, saw a steady decline in production. The rubber hose industry's production fluctuated around 5.7%, and the purchase of NBR was mainly based on demand with small orders. Market transactions were average, and the demand for NBR supported weak demand.

SunSirs NBR analysts believe that the current supply of NBR is mainly loose, but the downstream demand support for transactions is average. The price of raw material butadiene acrylonitrile has fallen, and it is expected that the NBR market will be weak in the short term.

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