SunSirs: China Butadiene Rubber Market Fluctuates and Rises

Recently (7.9-7.22), the BR (butadiene rubber) market has fluctuated and risen. According to the commodity market analysis system of SunSirs, as of July 22, the BR market price in East China was 12,070 RMB/ton, an increase of 3.25% from 11,690 RMB/ton on July 9. The price of raw material butadiene has significantly increased, and the cost of BR has strong support; BR production slightly increased; Downstream tire production has slightly increased, providing support for the demand for BR. As of July 22, the mainstream prices for Qilu, Daqing, Sichuan, and Yangtze Shunding in East China were 11,800 to 12,200 RMB/ton.

Recently (7.9-7.22), the price of butadiene has significantly increased, providing strong support for the cost of BR. According to the Commodity Market Analysis System of SunSirs, as of July 22, the price of butadiene was 9,400 RMB/ton, an increase of 4.83% from 8,966 RMB/ton on July 9.

Recently (7.9-7.22), the domestic Shunding plant has seen a slight increase in production, reaching around 68%. During this period, the BR plants of Jinzhou Petrochemical, Heze Kexin, and Yanshan Petrochemical have restarted.

Demand side: Recently (7.9-7.22), downstream tire production has slightly increased, providing essential support for the BR market. As of July 18th, the construction of semi steel tires by domestic tire companies has slightly increased to around 75%; 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 the raw material butadiene market will rise, and the cost of BR will receive strong support; Downstream tire production has slightly increased, with strong demand for support. Overall, it is expected that the BR market 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.