The market price of butadiene rubber in November fluctuated and fell. According to the commodity market analysis system of SunSirs, as of November 28th, the market price of BR in East China was 10,680 RMB/ton, a decrease of 4.22% from 11,150 RMB/ton at the beginning of the month.
Since November, the inventory of butadiene has remained high, coupled with the low volatility of international crude oil, the price of raw material butadiene has weakened and fallen, and the cost center of BR has shifted downwards; In addition, the overall production of BR in November fluctuated slightly around 70%; Downstream tires mainly require rigid support for BR. Under the comprehensive influence, the price of BR fluctuated and fell in November. As of November 28th, the mainstream prices for Qilu, Daqing, Sichuan, and Yangtze BR in East China were 10,600-10,800 RMB/ton.
In November, the price of butadiene fluctuated weakly and fell, dragging down the market for BR on the cost side. According to the Commodity Market Analysis System of SunSirs, as of November 28th, the price of butadiene was 7,016 RMB/ton, a decrease of 6.65% from 7,516 RMB/ton at the beginning of the month.
The production of BR in November fluctuated slightly, with an overall rate of around 70%.
Demand side: In November, the downstream semi steel tire production was stable in the early stage and slightly decreased in the later stage, providing strong support for the demand in the BR market. As of November 22, the construction of semi steel tires by domestic tire companies has started at around 70%; The construction of all steel tires by tire enterprises in Shandong region is around 62%.
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. Overall, it is expected that BR will experience weak fluctuations in the later period.
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