The market price of butadiene rubber in August slightly increased. According to the commodity market analysis system of SunSirs, as of August 28th, the market price of BR in East China was 12,200 RMB/ton, an increase of 2.01% from 11,960 RMB/ton at the beginning of the month. The price of raw material butadiene fluctuates and rises, causing the cost center of BR to shift upwards; The production of BR has fluctuated slightly, and there is not much pressure on the supply side; Downstream tire production has slightly increased, mainly supporting the demand for BR. As of August 28th, the mainstream reports for Qilu, Daqing, Sichuan, and Yangtze Shunding in East China are 11,900-12,400 RMB/ton.

The price of butadiene fluctuated slightly higher in August, and the cost support of BR strengthened. According to the Commodity Market Analysis System of SunSirs, as of August 28th, the price of butadiene was 9,283 RMB/ton, an increase of 2.58% from 9,050 RMB/ton at the beginning of the month.

In August, there was a slight fluctuation in the domestic BR plant. As of the end of August, the domestic BR production started at around 6.90%, and the supply pressure was not significant.

Demand side: Downstream tire production slightly increased in August, providing strong support for the demand in the BR market. As of August 22, the construction of semi steel tires by domestic tire companies has slightly increased to around 74%; The construction of all steel tires by tire companies in Shandong Province has slightly increased to around 65%.

From a fundamental perspective, analysts from SunSirs believe that raw material prices have slightly increased, downstream tire production has slightly increased, and coupled with the arrival of the peak season, it is expected that BR will continue to fluctuate and rise in the later period.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.