SunSirs: China Butadiene Rubber Market Fluctuations and Consolidation

Recently (8.1-8.11), the butadiene rubber (BR) market has been fluctuating and consolidating. According to the commodity market analysis system of SunSirs, as of August 11th, the BR market price in East China was 11,900 RMB/ton, a decrease of 0.50% from 11,960 RMB/ton on the first day. The price of raw material butadiene has been adjusted narrowly, and the cost of BR still has support; The expected start of production for BR has slightly increased; The downstream tire production is basically stable, and there is a strong demand for support for BR. As of August 11th, the mainstream prices for Qilu, Daqing, Sichuan, and Yangtze BR in East China were 11,800 to 12,200 RMB/ton.

Recently (8.1-8.11), 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 August 11th, the price of butadiene was 9,083 RMB/ton, an increase of 0.37% from 9,050 RMB/ton on the 1st. The high point during the cycle was 9,100 RMB/ton, and the low point during the cycle was 8,916 RMB/ton.

Recently (8.1-8.11), the domestic BR plant has started operating at around 6.80%. Due to the expected restart of BR plants in Shandong Yihua, Qixiang Tengda, and Maoming Petrochemical this week, the supply of BR is expected to increase slightly in the short term.

Demand side: Recently (8.1-8.11), the overall stability of downstream tire production has provided essential support for the BR market. As of August 8th, the construction of semi steel tires by domestic tire companies has slightly increased to around 72%; The construction of all steel tires by tire companies in Shandong Province has slightly increased to around 63%.

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. Some devices are planned to restart this week, and the pressure on the supply side of BR has increased. However, with the arrival of the traditional peak season, it is expected that BR may fluctuate and rise in the later period.

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