SunSirs: China BR Market Rose slightly

After the accelerated decline at the beginning of the month, the market of BR rose slightly last week (11.4-11.11). According to the monitoring of SunSirs, as of November 11, the price of BR in China was 11,400 RMB/ ton, up 0.62% from 11,330 RMB/ ton on the previous Friday. Last week, the ex factory price of two barrels of oil of butadiene rubber was temporarily stable. According to the monitoring of SunSirs, as of November 11, the ex factory price of butadiene rubber of PetroChina Northeast Sales Company was 11,200 RMB/ ton. Although the downstream commencement continued to decline, with the price of Shunding reaching a new low, the downstream inquiries increased, and the business offer was slightly adjusted. As of November 11, the market offer of Shunding Rubber was 11,200-11,750 RMB/ ton, while the private Shunding mainstream offer was 10700-11,300 RMB/ ton.

In the near future, Haopu 60,000 t/a and Lande 30,000 t/a BR plants will be shut down for maintenance. However, in the later stage, the production pressure of new units such as Zhejiang Petrochemical is still large, and the supply of cis BR will continue to be loose.

Last week (11.4-11.11), the raw butadiene market fell sharply, dragging down the butadiene rubber market. According to the monitoring of SunSirs, as of November 11, the price of butadiene was 6,603 RMB/ ton, down 7.60% from 7,145 RMB/ ton last Friday.

The natural rubber market rose slightly last week (11.4-11.11), which has weak support for BR. According to the monitoring of SunSirs, as of November 11, the price of natural rubber was 11,800 RMB/ ton, up 1.64% from 11,610 RMB/ ton last Friday.

The demand side is still weak. The commencement of downstream tire enterprises in November continued to decline, and the demand side is not supported by BR. According to the business agency, the construction of semi steel tires in Shandong is less than 60%, and that of full steel tires is around 50%.

According to the analysts of the business association, the supply pressure of BR is still present, the cost is down, and the demand is light. It is expected that China BR will fall again in the later period.

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