SunSirs: China Butadiene Rubber Market Slightly Rises

Recently (7.22-7.28), the butadiene rubber (BR) market has slightly increased. According to the commodity market analysis system of SunSirs, as of July 28, the BR market price in East China was 12,200 RMB/ton, an increase of 0.74% from 12,110 RMB/ton on July 22. The price of raw material butadiene has been adjusted narrowly, and the cost of BR still has support; The production of BR is basically stable; The downstream tire production is basically stable, and there is a strong demand for support for BR. As of July 28th, the mainstream prices for Qilu, Daqing, Sichuan, and Yangtze BR in East China were 11,850-12,300 RMB/ton.

Recently (7.22-7.28), the price of butadiene has fluctuated narrowly, and the cost of BR still remains supported. According to the Commodity Market Analysis System of SunSirs, as of July 28th, the price of butadiene was 9,466 RMB/ton, a decrease of 0.35% from 9,500 RMB/ton on July 22nd. The high point during the cycle was 9,583 RMB/ton, and the low point during the cycle was 9,400 RMB/ton.

Recently (7.22-7.28), the domestic BR plant has been operating steadily, at around 67%. In the later stage, Qixiang Tengda, Maoming Petrochemical and other plants plan to shut down for maintenance, which will alleviate the pressure on the supply side of BR.

Demand side: Recently (7.22-7.28), the overall stability of downstream tire production has provided essential support for the BR market. As of July 25th, 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 consolidate narrowly, and the cost of BR will continue to be supported; The downstream tire production is basically stable, and the demand side is just in need of support. With the significant increase in the price of BR since July, the downstream is gradually observing the high priced sources of goods, and it is expected that BR will face adjustments in the short term.

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