SunSirs: Cost Increases, China SBR Market Trend Rises

Recently (5.12-5.20), the market situation of SBR has risen. According to the Commodity Market Analysis System of SunSirs, as of May 20th, the price of SBR in the East China market was 12,816 RMB/ton, an increase of 4.77% from 12,233 RMB/ton at the beginning of the month. The prices of raw materials butadiene and styrene have significantly increased, and the cost support of SBR is strong. Downstream tire production has rebounded, providing strong support for the demand for SBR; The production of SBR has declined, and market quotations have rebounded slightly. As of the 20th, the mainstream market price of 1502 SBR in Fushun, Jihua, Yangzi, and Qilu in East China was around 12,700-13,100 RMB/ton.

Recently (5.12-5.20), the prices of raw materials butadiene and styrene have significantly increased, and the cost support of SBR is strong. According to the Commodity Market Analysis System of SunSirs, as of May 20th, the price of butadiene was 11,233 RMB/ton, an increase of 20.36% from 9,333 RMB/ton on May 12th; As of May 20th, the price of styrene was 8,220 RMB/ton, an increase of 7.09% from 7,676 RMB/ton on May 12th.

Supply and demand side: The recent increase in downstream tire production from May 12th to May 20th continues to support the SBR market. As of May 16th, the operating load of semi steel tires in domestic tire enterprises was around 78%; The operating load of all steel tires in tire enterprises in Shandong region is about 65%.

From a fundamental perspective, analysts from SunSirs believe that the current cost of SBR will receive strong support; At present, the production of SBR is declining, and there is not much pressure on the supply side. However, there are plans to put new equipment into operation, which will create certain pressure on the supply side; Downstream tire production has rebounded, providing strong support for SBR. Overall, it is expected that the market for SBR will fluctuate and consolidate in the short term.

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