SunSirs: China BR Market Has Seen a Slight Upward Trend

Recently (10.14-10.21), the market price of butadiene rubber in East China has slightly increased. According to the commodity market analysis system of SunSirs, as of October 21, the market price of butadiene rubber in East China was 11,370 RMB/ton, an increase of 0.53% from 11,310 RMB/ton on the 14th. On the one hand, the price of raw material butadiene has stabilized in the short term, and the cost of butadiene rubber is weakly supported; BR production fluctuates slightly; On the other hand, downstream tire production has significantly rebounded after the holiday, providing essential support for the recovery of butadiene rubber. The fundamentals have slightly improved, and the market for butadiene rubber has rebounded slightly from a low level. As of October 21st, the mainstream prices for Qilu, Daqing, Sichuan, and Yangtze BR in East China were 11,300 to 11,550 RMB/ton.

Recently (10.14~10.21), international crude oil prices have stabilized at a low level, while domestic butadiene prices have been consolidating narrowly, resulting in weak cost support for butadiene rubber. According to the Commodity Market Analysis System of SunSirs, as of October 21, the price of butadiene was 8,440 RMB/ton, unchanged from the 14th and 1.28% higher than the low point of 8,333 RMB/ton during the cycle.

Demand side: After the recent holiday period (10.14-10.21), downstream tire production has gradually resumed, providing essential support for the butadiene rubber market. As of October 17th, the construction of semi steel tires by domestic tire companies has slightly increased to around 71%; The production of all steel tires by tire companies in Shandong Province has slightly decreased to around 64%.

From a fundamental perspective, analysts from SunSirs believe that the overall fluctuation of production of butadiene rubber is not significant, and demand and costs have certain support for butadiene rubber. Overall, it is expected that butadiene rubber will fluctuate and consolidate in the short term.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.