SunSirs: China Styrene Butadiene Rubber Market Is on the Rise

Recently (12.1-12.22), the market for styrene butadiene rubber has been on the rise. According to the Commodity Market Analysis System of SunSirs, as of December 22, the price of SBR in the East China market was 11,400 RMB/ton, an increase of 3.40% from 11,025 RMB/ton at the beginning of the month. The price of butadiene has significantly increased, and the cost support of SBR has strengthened. Downstream tire production slightly decreased, providing support for the demand for SBR; The production of SBR has slightly decreased, while the market trend has slightly increased. As of December 22, the mainstream market price of 1502 SBR in Fushun, Jihua, Yangzi, and Qilu in East China is around 11,300-11,550 RMB/ton.

Recently (12.1-12.22), the price of raw material butadiene has significantly increased, while the price of styrene has weakened, resulting in stronger cost support for SBR. According to the Commodity Market Analysis System of SunSirs, as of December 22, the price of butadiene was 7,700 RMB/ton, an increase of 10.26% from 6,983 RMB/ton at the beginning of the month; As of December 22, the price of styrene was 6,636 RMB/ton, a decrease of 0.30% from 6,656 RMB/ton at the beginning of the month.

Recently (12.1-12.22), the start-up rate of domestic SBR plants has slightly decreased to around 79%.

Supply and demand side: Recently (12.1-12.22), downstream tire production has slightly decreased, providing strong support for the demand in the SBR market. As of December 19th, the construction of semi steel tires by domestic tire companies has reached around 71%; The construction of all steel tires by tire enterprises in Shandong region has reached about 63%.

From a fundamental perspective, analysts from SunSirs believe that the current cost support for SBR is strong, while the overall supply and demand are weak. It is expected that the SBR market will mainly experience fluctuations and consolidation in the short term.

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