Recently (6.1-6.11), the butadiene rubber market has fluctuated and weakened. According to the commodity market analysis system of SunSirs, as of June 11, BR market price in East China was 11,650 RMB/ton, a decrease of 2.18% from 11,910 RMB/ton on the 1st. The price of raw material butadiene continues to decline, and the cost center of butadiene rubber shifts downwards; BR production slightly decreased, easing supply pressure; Downstream tire production slightly decreased, providing support for the demand for butadiene rubber. As of June 11th, the mainstream prices in Qilu, Daqing, Sichuan, and Yangtze BR in East China were reported at 11,550-11,800 RMB/ton.

Recently (6.1-6.11), the price of butadiene has continued to decline, and the cost center of butadiene rubber has shifted downwards. According to the Commodity Market Analysis System of SunSirs, as of June 11th, the price of butadiene was 9,350 RMB/ton, a decrease of 3.94% from 9,733 RMB/ton on the 1st.

Recently (6.1-6.11), domestic companies such as Haopu and Yanshan have stopped maintenance of their butadiene rubber plants, and the production rate of butadiene rubber plants in China has dropped to around 67%, which has eased the pressure on the supply side of butadiene rubber.

On the demand side, the recent (6.1-6.11) slight decrease in downstream tire production has provided strong support for the demand in the butadiene rubber market. As of June 8th, the operating load of semi steel tires in domestic tire enterprises is around 73%; The operating load of all steel tires in tire enterprises in Shandong region is about 63%. As of the week of June 8th, domestic tire companies had 42 days of finished steel tire inventory, which remained unchanged on a week on week basis; The inventory of semi-finished steel tires remained unchanged on a week on week basis for 46 days.

From a fundamental perspective, analysts from SunSirs believe that the raw material butadiene market will return to weakness, and the cost support for butadiene rubber will weaken; Downstream production has slightly decreased, and the production of butadiene rubber equipment has also slightly decreased. Overall, it is expected that the butadiene rubber market will be mainly weakly consolidated in the later stage.

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