In phases, the SBR market in China shrank marginally

In the month of July, the SBR market of China experienced a gradual price decline . The Chinese market has witnessed a marginal decrease in its rates, which has gone down from 11,833 RMB/ton to 11,750 RMB/ton, starting from the mid of the month till July 25. The contraction ranges around 0.70% of the price drop. However, certain factors have helped to maintain the stability of SBR prices in the market; specifically, the Ex-factory prices of SBR have shown stability during this time.

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Primarily, the costs of the raw materials that are utilized to produce the end-use product, SBR, has shown steadiness. Butadiene and Styrene are marking a gradual rise in their rates, which have ultimately contributed towards the market value of SBR. Moreover, the constant demand for SBR material from the downstream factories has provided support to the declining prices of the end-use product.

The SBR trades are stable and are running seamlessly. As of December 25, the mainstream of the SBR 1502 variety in the domestic market was marked around 11700 RMB/ton to 12,100 RMB/ton. As mentioned, the prices of the raw materials have been steadily increasing since the mid of July. The rates of Butadiene reached around 7,143 RMB/ton, which notes around 5.35% of growth from 6,781 RMB/ton in the middle of July.

Accordingly, the rate of Styrene is also showing a hike marking a growth of around 3.35% in late July. However, there were slight changes in the raw material supply market, as the production load of the Shenhua Chemical SBR plant was reduced from Line 3 to 2 in late July, along with the Lanhua Butadiene plant scheduled to restart at the end of this month. Altogether, slight changes were impacting the operationality of the SBR plants, but they are anticipated to settle in the later phases.

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The increase in the market rates of the raw materials is directly influencing the rates of SBR material, ensuring its stability in mid of the contractions. At the same time, the decline in the rates of natural rubber in the market is quite noticeable. The natural rubber prices have marked around 11,870 RMB/ton from 12,150 RMB/ton, which has decreased by 2.30%, during July 25. The supply rates and prices of natural rubber have also affected the overall SBR market in China.

Some analysts conclude that the Styrene Butadiene Rubber market is crowded with strong cost support in the overall Chinese trade, which directly notes the market value and cost price is receiving a good status. It is because of the rising prices of the raw material used to manufacture SBR, which ensures maintaining a stable end-product price range.

According to Procurement Resource, the prices of SBR are experiencing a marginal decline, which has dropped around 0.70% during the end of July. However, the gradual increase in the rates of the raw material used to manufacture SBR material ensures the maintenance of a stable price range in the Chinese market.