Last week (5.29-6.5), the market for BR slightly declined. According to the Commodity Market Analysis System of SunSirs, as of June 5, the domestic price of BR was 10,400 RMB/ton, a decrease of 0.48% from last Monday's 10,450 RMB/ton. The price of raw material butadiene continues to decline significantly, and the cost of BR is declining; During the cycle, the factory price of BR supplier was reduced by 300 RMB/ton, resulting in a decrease in merchant offers. According to the monitoring of SunSirs, as of June, the factory price of BR at Sinopec North China Sales Company was reported at 9,900 RMB/ton. As of June 5th, Qilu, Yanshan, Yangzi, Dushanzi, Sichuan, Qixiang, Zhenhua and other mainstream markets of BR in East China reported 9,900-10,500 RMB/ton.

Last week (5.29-6.5), the operating rate of BR slightly increased, and the supply pressure slightly increased. The price of raw material butadiene continues to decline significantly, and the cost of BR is declining. According to the Commodity Market Analysis System of SunSirs, as of June 5, the price of butadiene was 6,378 RMB/ton, a decrease of 10.66% from last Monday's 7,140 RMB/ton.

Last week (5.29-6.5), the natural rubber market was weak and volatile, providing slight support for BR. According to the Commodity Market Analysis System of SunSirs, as of June 5, the price of natural rubber was 11,690 RMB/ton, an increase of 0.43% from last Monday's 11,640 RMB/ton, and the low point during the cycle was 11,600 RMB/ton.

The tire operating rate fluctuated slightly last week (5.29-6.5), with limited demand for rubber support. It is understood that as of late May 2023, the operating load of all steel tires for rubber tire enterprises in Shandong region is 6.4%; The operating load of semi steel tires for domestic rubber tire enterprises is 7.1%.

Future Market Forecast: SunSirs analysts believe that in the near future, some BR plants will restart, increasing pressure on the supply side of BR; Downstream construction fluctuates slightly, with limited support for BR. Although the price of natural rubber is slightly supported, the pressure on natural rubber inventory remains, and short-term support for BR is not optimistic. Overall, it is expected that BR in China will experience weak consolidation in the short term.

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