Recently (5.12-5.20), the BR market has seen a significant upward trend. According to the Commodity Market Analysis System of SunSirs, as of May 20th, the BR market price in East China was 12,670 RMB/ton, an increase of 5.41% from 12,020 RMB/ton on May 12th. The price of raw material butadiene has significantly increased, and the cost center of BR has shifted upwards; Shunding rubber production has increased, but supply pressure still exists; Downstream tire production has increased, providing essential support for BR. As of May 20th, the mainstream prices for Qilu, Daqing, Sichuan, and Yangtze Shunding in East China are 12,550-13,000 RMB/ton.

Recently (5.12-5.20), the price of butadiene has significantly increased, and the cost center of BR has shifted upwards. According to the Commodity Market Analysis System of SunSirs, as of May 20th, the price of butadiene was 11,233 RMB/ton, an increase of 20.36% from 9,333 RMB/ton on May 12th.

Recently (5.12-5.20), the construction of domestic BR plants has slightly increased, with the overall construction rate rising to around 79%. The supply of BR still exists.

Demand side: The recent increase in downstream tire production from May 12th to May 20th continues to support the Shunding rubber market. As of May 16th, the operating load of semi steel tires in domestic tire enterprises was around 78%; The operating load of all steel tires in tire enterprises in Shandong region is about 65%.

From a fundamental perspective, analysts from SunSirs believe that the price of butadiene will remain high in the short term, and the cost support of BR will be strong; The increase in downstream construction has a greater impact on the market of BR. Overall, it is expected that the BR market will fluctuate and consolidate in the later stage.

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