SunSirs: Strong Raw Materials and Weak Supply and Demand have Led to a Slight Increase in China BR Market

Recently (4.22-4.28), the market price of BR has slightly increased. According to the commodity market analysis system of SunSirs, as of April 28th, the market price of BR in East China was 11,950 RMB/ton, an increase of 1.88% from 11,730 RMB/ton on the 22nd. The price of raw material butadiene has significantly increased, and the cost support of BR has greatly strengthened; BR production has slightly increased, leading to a slight increase in supply pressure; Downstream production slightly decreased, and overall inquiries in the BR market remained flat. Merchant offers slightly increased, with mainstream quotes in Qilu, Daqing, Sichuan, and Yangtze BR in East China ranging from 11,900 to 12,200 RMB/ton as of April 28th; The price of some private BR is around 11,700-11,900 RMB/ton.

Recently (4.22-4.28), the price of butadiene has significantly increased, and the cost support of BR has strengthened. According to the Commodity Market Analysis System of SunSirs, as of April 28th, the price of butadiene was 9,300 RMB/ton, an increase of 13.41% from 8,200 RMB/ton on the 22nd.

Recently (4.22-4.28), the construction of domestic BR plants has rebounded, with an overall construction rate of around 67%. There are still some plans to restart the maintenance equipment in the later stage, and the supply of BR is expected to increase.

On the demand side, downstream tire production has slightly decreased, and there is a strong wait-and-see atmosphere in the BR market, with flat inquiries. As of April 25th, the operating load of semi steel tires in domestic tire enterprises was around 78%; The production of all steel tires by tire companies in Shandong Province has slightly decreased to around 63%.

Market forecast: From a fundamental perspective, analysts from SunSirs believe that the current price of butadiene has significantly increased, and the cost support for BR has greatly strengthened; However, due to the impact of the international trade situation, downstream inquiries are cautious and market transactions are flat in the short term. In addition, with the increase in production of BR, it is expected that the BR market will continue to consolidate weakly in the later stage.

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