In September, the butadiene rubber market was weak and volatile, with a downward trend. According to the commodity market analysis system of SunSirs, as of September 29th, the butadiene rubber market price in East China was 11,750 RMB/ton, a decrease of 3.69% from 12,200 RMB/ton at the beginning of the month.

On the one hand, the price of raw material butadiene has fluctuated and fallen, which has a negative impact on the cost of butadiene rubber; On the other hand, the production of butadiene rubber has slightly decreased, and the pressure on the supply side has eased; Downstream tire production fluctuated slightly, mainly supporting the demand for butadiene rubber. As of September 29th, the mainstream prices for Qilu, Daqing, Sichuan, and Yangtze BR in East China were 11,650-12,000 RMB/ton.

In September, the price of butadiene weakened and the cost support for butadiene rubber weakened. According to the Commodity Market Analysis System of SunSirs, as of September 29th, the price of butadiene was 8,990 RMB/ton, a decrease of 3.51% from 9,316 RMB/ton at the beginning of the month.

Affected by the shutdown and maintenance of multiple butadiene rubber units, the domestic butadiene rubber units slightly decreased in September, and as of the end of September, the domestic butadiene rubber production started at around 66%.

On the demand side, downstream tire production in September remained stable with a slight increase, providing essential support for the butadiene rubber market. As of September 28th, the construction of semi steel tires by domestic tire companies has started at around 73%; The construction of all steel tires by tire companies in Shandong Province has slightly increased to around 66%.

From a fundamental perspective, analysts from SunSirs believe that the abundant supply of raw material butadiene is mainly due to weak market conditions, with slight fluctuations in downstream tire production. In October, Yangzi Qilu and other BR units plan to shut down for maintenance. Overall, it is expected that BR may experience fluctuations and consolidation in the later period.

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