The butadiene rubber (BR) market slightly rose in July. According to the commodity market analysis system of SunSirs, as of July 29th, the butadiene rubber market price in East China was 12,210 RMB/ton, an increase of 3.30% from 11,820 RMB/ton at the beginning of the month, and the lowest point during the cycle was 8,600 RMB/ton. The price of raw material butadiene fluctuates and rises, causing the cost center of butadiene rubber to shift upwards; The production of butadiene rubber has fluctuated slightly, and the pressure on the supply side still exists; Downstream tire production has slightly increased, mainly supporting the demand for butadiene rubber. As of July 29th, the mainstream prices for Qilu, Daqing, Sichuan, and Yangtze BR in East China were 12,000 to 12,350 RMB/ton.

In July, the price of butadiene fluctuated and rose, while the cost support of butadiene rubber strengthened. According to the Commodity Market Analysis System of SunSirs, as of July 29th, the price of butadiene was 9,466 RMB/ton, an increase of 5.19% compared to 9,000 RMB/ton at the beginning of the month.

In July, there was a slight fluctuation in the domestic butadiene rubber plant. As of the end of July, the domestic butadiene rubber production started at around 6.70%, and supply pressure still exists.

Demand side: Downstream tire production slightly increased in July, and domestic tire companies' semi steel tire production slightly increased from 70% at the beginning of the month to around 75% at the end of the month; The construction of all steel tires by tire companies in Shandong has increased from 62% to around 65% by the end of the month. Mainly for the rigid support of butadiene rubber.

From a fundamental perspective, analysts from SunSirs believe that the raw material butadiene market will rise significantly, and the cost support for butadiene rubber will strengthen; Downstream demand for BR is in high demand, and in August, Qilu and other BR units plan to shut down for maintenance. The pressure on the supply side of BR will ease in the later stage. Overall, it is expected that the BR market will continue to fluctuate and rise in August.

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