Last week (11.13-11.21), the situation of BR was weak and sorted out. According to the Commodity Market Analysis System of SunSirs, as of November 21, the market price of BR in East China was 12,330 RMB/ton, a decrease of 0.40% from the previous Monday's 12,380 RMB/ton.

The price of raw material butadiene has stabilized at a high level, and there is still support for the cost of BR. However, downstream tire factories have started operating slightly lower than in early November, and the demand for BR is weak. In addition, the restart of Sichuan Petrochemical's butadiene plant has led to a weak supply and demand situation for BR. As of November 21, PetroChina Northeast Sales Company's Daqing Shunding Northeast Warehouse has raised its price by 12,000 RMB/ton. The domestic market quotation range for two barrels of oil BR is around 11,800-12,400 RMB/ton, and the quotation for private enterprise BR is between 11,450-11,700 RMB/ton.

Last week (11.13-11.21), the construction of BR increased slightly compared to the previous period. Sichuan Petrochemical's 150,000 ton/year BR plant resumed operation from the 13th, and Shandong Weite's 50,000 ton/year BR plant was temporarily shut down from the 16th.

Last week (11.13-11.21), the price of butadiene stabilized at a high level, and the cost of BR still has support. According to the Commodity Market Analysis System of SunSirs, as of November 21, the price of butadiene was at 9,541 RMB/ton, a decrease of 0.05% from the previous Monday's 9,546 RMB/ton.

Last week (11.13-11.21), the natural rubber market rebounded slightly, with slightly more impact on BR. According to the Commodity Market Analysis System of SunSirs, as of November 21, the price was 13,150 RMB/ton, an increase of 1.39% from the previous Monday's 12,970 RMB/ton.

Demand side: Last week (11.13-11.21), the start of tire construction saw a slight decline in all steel tires. New orders were cautiously purchased, and market transactions were flat. Demand was stable and weak in the face of rubber support. It is understood that as of mid November 2023, the operating load of all steel tires for rubber tire enterprises in Shandong region is 6.2%; The operating load of semi steel tires for domestic rubber tire enterprises is 7.2%.

SunSirs analysts believe that in the short term, downstream construction will slightly decrease and BR construction will slightly increase. The impact of supply and demand on the BR market is relatively short. However, natural rubber prices are at a high stage, coupled with high raw material prices, which will provide some support for BR. It is expected that the spot market of BR will be weak and consolidated in the short term.

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