SunSirs: China SBR Market has slightly Weakened

Recently (5.20-5.27), the market for SBR has slightly weakened. According to the Commodity Market Analysis System of SunSirs, as of May 27th, the price of SBR in the East China market was 12,366 RMB/ton, a decrease of 3.51% from 12,816 RMB/ton on the 20th. The prices of raw materials butadiene and styrene have declined, and the cost support for SBR has significantly weakened. Downstream tire production is stable, providing strong support for the demand for SBR; The production of SBR has risen, and the supply pressure has slightly increased. As of the 27th, the mainstream market price of 1502 SBR in Fushun, Jihua, Yangzi, and Qilu in East China is around 12,250-12,500 RMB/ton.

Recently (5.20-5.27), the prices of raw materials butadiene and styrene have been weakly declining, and the cost support for SBR has weakened. According to the Commodity Market Analysis System of SunSirs, as of May 27th, the price of butadiene was 10,200 RMB/ton, a decrease of 9.20% from 11,233 RMB/ton on May 20th; As of May 27th, the price of styrene was 8,110 RMB/ton, a decrease of 1.34% from 8,220 RMB/ton on May 20th.

Recently (5.20-5.27), the construction of domestic SBR plants has slightly increased, with construction around 70%.

Supply and demand side: Recently (5.20-5.27), stable downstream tire production has provided essential support for the SBR market. As of May 23rd, 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%.; As of the week of May 23rd, domestic tire companies had 43 days of finished steel tire inventory, which remained unchanged on a week on week basis; The inventory of semi-finished steel tires has been 47 days, with an increase of 1 day in the weekly cycle ratio.

From a fundamental perspective, analysts from SunSirs believe that the current cost support for SBR is weakening again; The start of production of SBR has slightly increased the pressure on the supply side, coupled with plans for new equipment to be put into operation, which has put certain pressure on the supply side; Downstream tire production is stable, providing strong support for SBR. Overall, it is expected that the SBR market will consolidate weakly in the short term.

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