SunSirs: China SBR Market slightly Declined

Recently (3.20-3.29), the SBR market has slightly declined. According to the Commodity Market Analysis System of SunSirs, as of March 29th, the price of SBR in the East China market was 13,425 RMB/ton, a decrease of 1.95% from 13,691 RMB/ton in early March. Manufacturers have lowered their ex factory prices during the cycle. According to the Commodity Market Analysis System of SunSirs, as of March 29th, the ex factory price of Jihua Butadiene in the Northeast region of PetroChina was 13,400 RMB/ton, with a slight decrease in merchant offers. As of the 29th, the mainstream market price of SBR in Fushun, Jihua, and Yangzi in East China is around 13,200-13,600 RMB/ton.

Recently (3.20-3.29), the prices of raw materials such as butadiene and styrene have remained high, and there is still support for the cost of SBR. According to the Commodity Market Analysis System of SunSirs, as of March 29th, the price of butadiene was 11,525 RMB/ton, a decrease of 0.07% from 11,532 RMB/ton on March 20th; As of March 29th, the price of styrene was 9,300 RMB/ton, a decrease of 1.73% from 9,464 RMB/ton on March 20th.

Recently (3.20-3.29), the overall operation of domestic SBR plants has slightly decreased, with SBR operating at around 67%.

Supply and demand side: Downstream tire production is temporarily stable, providing certain support for SBR. It is understood that as of late March, the operating load of semi steel tires in domestic tire enterprises was around 79%; The operating load of all steel tires in tire enterprises in Shandong region is close to 70%; But in the middle of the month, the price of SBR increased significantly, and downstream consumers resisted the high price, resulting in a slowdown in procurement efforts.

SunSirs analysts believe that there is strong support for the cost of SBR, and the supply of SBR is expected to slightly decline in the later stage. Downstream tire production has increased to a relatively high level, and demand is supported by rigid demand for styrene butadiene. Downstream resistance to high priced sources is expected. Overall, it is expected that the SBR market will consolidate in the later stage.

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