SunSirs: Costs Continue to Decline, Leading to a Weak and Downward Trend in China SBR Market in October

The cost has decreased, and the market for SBR in October has been weak and declining. According to the Commodity Market Analysis System of SunSirs, as of October 31st, the price of SBR in the East China market was 11,283 RMB/ton, a decrease of 4.98% from 11,875 RMB/ton at the beginning of the month. As of October 31st, the mainstream market price of 1502 SBR in Fushun, Jihua, Yangzi, and Qilu in East China is around 11,250-11,400 RMB/ton.

In October, the prices of raw materials butadiene and styrene showed a weak downward trend, and the cost center of SBR shifted downwards. According to the Commodity Market Analysis System of SunSirs, as of October 31st, the price of butadiene was 7,516 RMB/ton, a decrease of 15.42% from 8,886 RMB/ton at the beginning of the month; As of October 31st, the price of styrene was 6,752 RMB/ton, a decrease of 5.17% from 7,120 RMB/ton at the beginning of the month.

Demand side: Downstream semi steel tire production slightly increased in October, providing essential support for the SBR market. As of October 24th, the construction of semi steel tires by domestic tire companies has started at around 74%; The construction of all steel tires by tire companies in Shandong Province has slightly increased to around 66%.

From a fundamental perspective, analysts from SunSirs believe that the current supply of raw materials such as butadiene and styrene is sufficient, while the cost support for SBR is relatively weak; The production of SBR is basically stable; The downstream tire industry provides strong support for SBR. Overall, it is expected that the SBR market will fluctuate and consolidate in the later stage.

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