SunSirs: The Market Situation of China BR has slightly Declined from a High Level

https://www.chemnet.com   Jun 25,2024 SunSirs

Recently (June 18th to June 24th), the market price of butadiene rubber has slightly declined from its high point. According to the Commodity Market Analysis System of SunSirs, as of June 24th, the market price of butadiene rubber in East China was 15,490 RMB/ton, a decrease of 0.51% from 15,570 RMB/ton on June 18th. Narrow range consolidation of high prices for raw material butadiene; The production of butadiene rubber continues to remain low; Downstream tire production has slightly increased recently, but overall inquiries are cautious and slightly resistant to high priced sources. The futures of butadiene rubber have fluctuated at high levels, and on the 24th, the ex factory price of CPC butadiene rubber was lowered by 400 RMB/ton to 15,400 RMB/ton, weakening the market atmosphere.

Recently (6.18-6.24), the price of butadiene has been at a high level, and the cost support for butadiene rubber remains strong. According to the Commodity Market Analysis System of SunSirs, as of June 24th, the price of butadiene was 13,625 RMB/ton, a decrease of 0.18% from 13,650 RMB/ton on June 18th.

Recently (6.18-6.24), the construction of domestic butadiene rubber plants has slightly increased but still remains low. As of June 21, the construction of domestic butadiene rubber plants is around 5.8%.

Demand side: Downstream tire production has slightly increased, with some support from the butadiene rubber market. Downstream inquiries are resistant to high priced sources, resulting in a slight decline in the high price of butadiene rubber. As of June 20th, the operating load of semi steel tires in domestic tire enterprises was around 79%; The operating load of all steel tires for tire enterprises in Shandong region is about 58%.

From a fundamental perspective, analysts from SunSirs believe that the price of raw material butadiene is still at a high level, and the cost support for butadiene rubber is strong; The production of butadiene rubber remains low, and the market supply is tight; Recently, downstream tire companies have seen a slight increase in production, but there is still a fear of high prices for butadiene rubber. Overall, the butadiene rubber market has remained strong in the near future under the support of cost and low production. We still need to pay attention to the downstream stocking situation in the future.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.

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