Recently (12.1-12.22), the butadiene rubber market has seen a significant upward trend. According to the Commodity Market Analysis System of SunSirs, as of December 22, the market price of butadiene rubber in East China was 11,090 RMB /ton, an increase of 4.03% from 10,660 RMB/ton at the beginning of the month. The price of raw material butadiene has risen, and the cost support of BR has strengthened; The preliminary maintenance equipment has basically restarted operation, and the production of BR has slightly increased; Downstream tire production slightly decreased, providing support for the demand for BR. The basic operation of BR is weak. As of December 22, the mainstream prices for Qilu, Daqing, Sichuan, and Yangtze Shunding in East China were 11,000-11,200 RMB/ton.
Recently (12.1-12.22), the external market for butadiene has been strong, and domestic supply prices have gradually increased. The domestic butadiene market prices have risen, and the cost support for BR has strengthened. According to the Commodity Market Analysis System of SunSirs, as of December 22, the price of butadiene was 7,700 RMB/ton, an increase of 10.26% from 6,983 RMB/ton at the beginning of the month.
Recently (12.1-12.22), the construction of Shunding facilities in China has slightly increased to around 76%. The shutdown and maintenance equipment of Maoming Petrochemical is scheduled to restart in January.
Demand side: Recently (12.1-12.22), downstream tire production has slightly decreased, providing strong support for the demand in the BR market. As of December 19th, the construction of semi steel tires by domestic tire companies has reached around 71%; The construction of all steel tires by tire enterprises in Shandong region has reached about 63%.
From a fundamental perspective, analysts from SunSirs believe that the cost support for BR will continue in the short term, but the supply and demand side will be weak. Overall, it is expected that BR will experience fluctuations and consolidation in the short term.
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