SunSirs: China SBR Market Is Weak and Declining

Recently (10.1-10.14), the market for SBR has been weak and declining. According to the Commodity Market Analysis System of SunSirs, as of October 14th, the price of SBR in the East China market was 11,541 RMB/ton, a decrease of 2.81% from 11,875 RMB/ton at the beginning of the month. The prices of raw materials butadiene and styrene have weakened and decreased, while the cost of SBR has slightly decreased. During the holiday period, downstream tire production significantly decreased, providing weak support for SBR; The production of SBR has been basically stable. As of October 14th, the mainstream market price of 1502 SBR in Fushun, Jihua, Yangzi, and Qilu in East China is around 11,450-11,600 RMB/ton.

Recently (10.1-10.14), the prices of raw materials such as butadiene and styrene have weakened, and the cost support for SBR has weakened. According to the Commodity Market Analysis System of SunSirs, as of October 14th, the price of butadiene was 8,446 RMB/ton, a decrease of 4.95% from 8,886 RMB/ton at the beginning of the month; As of October 14th, the price of styrene was 7,020 RMB/ton, a decrease of 1.40% from 7,120 RMB/ton at the beginning of the month.

Supply and demand side: Recently (10.1-10.14), due to the impact of the National Day holiday, the average production of downstream tires has significantly decreased, which has a negative impact on the SBR market. As of October 9th, the construction of semi steel tires by domestic tire companies has slightly increased to around 42%; The production of all steel tires by tire companies in Shandong Province has slightly decreased to around 42%.

From a fundamental perspective, analysts from SunSirs believe that the overall supply and demand of SBR is weak, and it is expected that the SBR market will mainly fluctuate weakly in the short term.

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