SunSirs: After Spring Festival, The Prices of BR and SBR Continued to Rise

After the Spring Festival, China domestic BR and SBR market rose significantly. According to the monitoring of SunSirs, as of February 22, the domestic market price of BR was 12 170.00 RMB/ ton, up 8.08% compared with that before the festival; the market price of SBR was 13 650.00 RMB/ ton, up 7.55% compared with that before the festival.

Just four working days after the Spring Festival, the ex-factory prices of BR and SBR increased by about 1,000 yuan/ ton. According to SunSirs, as of February 22, the ex-factory price of emulsion polymerized SBR of PetroChina Northeast has increased by 1,100 RMB/ ton compared with that before the festival. At present, Jihua 1502 offers 13,700 RMB/ ton, and the Northeast warehouse raises the price; Fushun 1502 offers 13,700 RMB/ ton, and the Northeast warehouse raises the price. The price of BR of PetroChina Northeast increased by 1 000 RMB/ ton compared with that before the festival. At present, the ex-warehouse price of Daqing B is 12,400 RMB/ ton.

The price of raw materials rose sharply, and the cost of BR and SBR formed a certain support. According to the monitoring of SunSirs, as of February 22, the butadiene price was 6,747 RMB/ ton, which was 7.42% higher than 6,281 RMB/ ton on the last trading day before the Spring Festival. As of February 22, the domestic price of styrene was 9,300 RMB/ ton. Compared with 7,183 RMB/ ton on the last trading day before the festival, it was up 29.47%.

The price of natural rubber continues to rise. Due to the substitution of natural rubber with BR and SBR in tire application, natural rubber, BR and SBR interact in price to a certain extent. According to the monitoring of SunSirs, as of February 22, the price of natural rubber was 14,675 RMB/ ton, 4.63% higher than 14,025 RMB/ ton on the last trading day before the festival, driving the bullish atmosphere of BR and SBR.

The high raw material price and the high price of natural rubber form a strong support for BR and SBR. However, the recent price rise is too fast. In addition, it will take time for the enterprises in the later stage of the next festival to fully recover. It is expected that the price of BR and SBR will be stable in the short term, and there is still room for rise in the medium and long term.

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