SunSirs: Cost Support, China SBR Market Rose in February 2024

The market for SBR rose in February. According to the commodity market analysis system of SunSirs, as of February 27th, the price of butadiene benzene 1502 was 12,991 RMB/ton, an increase of 5.77% from 12,283 RMB/ton at the beginning of the month.

The supply of SBR remained stable in February, with a slight increase expected in the later period; Downstream tire production was low during the Spring Festival, but increased after the holiday. However, inquiries about SBR were cautious; The price of raw material butadiene has significantly increased, while the price of styrene has slightly increased, resulting in stronger cost support for SBR. The market for SBR has significantly increased due to cost and supply price support.

In February, the supply of SBR remained stable, and Yibang plans to restart its 100,000 ton/year plant in the later stage. The supply of SBR is expected to slightly increase in the later stage.

In February, the price of butadiene, a raw material for SBR, increased significantly, while the price of styrene slightly increased, resulting in a stronger cost support for SBR.

According to the commodity market analysis system of SunSirs, as of February 27th, the price of butadiene was 10,750 RMB/ton, an increase of 10.19% from 9,756 RMB/ton at the beginning of the month; As of February 27th, the price of styrene was 8,925 RMB/ton, an increase of 3.33% from 8,637 RMB/ton at the beginning of the month.

Demand side: During the holiday season, downstream tire production is low, and the demand side is weak. After the Spring Festival, downstream tire production has increased, providing certain support for SBR. It is understood that as of the 22nd, the operating load of semi steel tires in domestic tire enterprises was around 6.3%; The operating load of all steel tires for tire enterprises in Shandong region is around 45%.

SunSirs analysts believe that the supply side of SBR is expected to increase slightly in the later stage, with some support from the cost side and expected support from the demand side. It is expected that the price of SBR will continue to operate at a high level in the later stage.

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