SunSirs: China BR Market Has Slightly Weakened

Recently (11.20-11.30), the butadiene rubber market has slightly weakened. According to the commodity market analysis system of SunSirs, as of November 30th, the butadiene rubber market price in East China was 10,680 RMB/ton, a decrease of 1.93% from 10,890 RMB/ton on the 20th. On the one hand, the price of raw material butadiene is running at a low level, and the cost support for butadiene rubber is relatively weak; Maintenance and restart coexist, and the production of BR is basically maintained at around 70%; Downstream tire production slightly decreased, weakening support for butadiene rubber. The basic operation of butadiene rubber is weak. As of November 30th, the mainstream prices for Qilu, Daqing, Sichuan, and Yangtze BR in East China were 10,600-10,800 RMB/ton.

Recently (11.20-11.30), domestic butadiene prices have been running at a low level, and the cost support for butadiene rubber is relatively weak. According to the Commodity Market Analysis System of SunSirs, as of November 30th, the price of butadiene was 7,016 RMB/ton, a decrease of 3.81% from 7,266 RMB/ton on the 20th.

Recently (11.20-11.30), the domestic BR unit has started operating at around 70%. The Gaoshun BR unit of Zhejiang Petrochemical has been put into operation and restarted, while the BR unit of Maoming Petrochemical has undergone routine maintenance.

Demand side: Recently (11.20-11:30), downstream tire production has slightly decreased, which has weakened support for the butadiene rubber market. As of November 27th, the construction of semi steel tires by domestic tire companies has reached around 68%; The construction of all steel tires by tire companies in Shandong region has reached about 62%.

From a fundamental perspective, analysts from SunSirs believe that the abundant supply of raw material butadiene is mainly due to weak market conditions, and downstream tire production has slightly decreased. Overall, it is expected that butadiene rubber will experience weak fluctuations in the later period.

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