China SBR Market was Weak and Fell in July

August 1, 2022

Latest company news about China SBR Market was Weak and Fell in July

In July, the SBR market fell as a whole and rebounded slightly at the end of the month. The price of raw butadiene / styrene declined as a whole, and the cost support weakened; The operating rate of downstream tires fell, and the demand side was weak; Drive the SBR market downward. However, the international crude oil price rebounded at a low level in the second half of the month, which led to a bullish atmosphere in the market. At the end of July, the SBR market showed a tail raising trend at the end of the month. According to the monitoring data of business agency, as of July 31, the price of styrene butadiene 1502 was 12,291 RMB/ ton, down 1.67% from 12,500 RMB/ ton at the beginning of the month, and the low point in the month was 12,183 RMB/ ton.

The prices of butadiene and styrene fell as a whole, and the cost was weakly supported by SBR. According to the monitoring of business news agency, as of July 31, the price of butadiene was 9,618 RMB/ ton, down 7.53% from 10,402 RMB/ ton at the beginning of the month. As of July 31, the price of styrene was 9,742 RMB/ ton, down 7.46% from 10,528 RMB/ ton at the beginning of the month, and the low point in the month was 9,642 RMB/ ton. In July, domestic butadiene and styrene plants had many early maintenance devices restarted, which brought certain pressure on the supply side.

In July, the natural rubber market fell first and then rose. The overall weakness has a negative impact on SBR. As of July 31, the price was 12,300 RMB/ ton, down 5.05% from 12,954 RMB/ ton at the beginning of the month, and the low point in the month was 11,910 RMB/ ton. In July, the domestic Tianjiao spot market reached the annual trough, which was mainly affected by the pressure on the supply side. At present, the rainfall weather in domestic and foreign production areas did not have a great impact on production, and the global supply reached the peak, with obvious supply pressure. However, as the price of natural rubber reached the bottom, for downstream product enterprises, the procurement cost was reduced, the order receiving and operating rate of some enterprises recovered at the end of the month, and the goods delivery of natural rubber merchants improved, and the offer increased slightly.

In July, domestic tire enterprises started a small decline, with the start of all steel tires at 65% and half steel tires at 55%. In addition, the rubber products industry was slow to ship due to the off-season, the overall start-up did not significantly improve, and the support for the demand for SBR was weak.

Market forecast

SunSirs analysts believe that the demand side is stable and weak, but the international WTI crude oil price hit US $100/ barrel again, and the market bullish atmosphere increased. It is expected that in the later stage, SBR enterprises will be greatly affected by the cost of crude oil in the basic state of de warehousing, and the price of SBR will fluctuate and consolidate in the short term.

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