Recently (9.15-9.22), the spot market price of butadiene rubber has slightly declined from its high point. According to the Commodity Market Analysis System of Business Society, as of September 22, the market price of butadiene rubber in East China was 13660 yuan/ton, a decrease of 1.16% from last Friday’s 13820 yuan/ton.

The price of raw material butadiene is running at a high level, and the cost support for butadiene rubber is still strong. In addition, the overall inventory pressure of butadiene rubber is not high, and coupled with stable downstream construction and high demand support, the supply price of butadiene rubber is strong. However, on the one hand, the pre holiday stocking has basically ended, and the market atmosphere is gradually wait-and-see. On the other hand, downstream resistance towards high priced sources has increased. Later this week, the market quotation for butadiene rubber has adjusted downwards. As of September 22, the mainstream price for domestic butadiene rubber market is 13400-13900 yuan/ton, while the mainstream price for private butadiene rubber in East China is 12600-13000 yuan/ton.

The industry’s construction is temporarily stable, and the Shunding unit of Jinzhou Petrochemical is scheduled to restart this weekend.

Recently (9.15-9.22), the butadiene market has been operating at a high level, and there is still support for the cost of cis-1,4-polybutadiene rubber. According to the Commodity Market Analysis System of Business Society, as of September 22, the price of butadiene was 8747 yuan/ton, an increase of 1.01% from last Friday’s 8660 yuan/ton.

Demand side: The operating rate of tires is basically stable, with rubber as the main support. It is understood that as of mid September 2023, the operating load of all steel tires for rubber tire enterprises in Shandong region is 6.4%; The operating load of semi steel tires in domestic rubber tire enterprises is 7.2%, which forms a certain support for cis-1,4-polybutadiene rubber.

Future Forecast: Business Society analysts believe that the high price of butadiene rubber raw materials is running high, and there is not much supply pressure. Although downstream companies just need support, they have a resistance attitude towards high priced butadiene rubber. It is expected that the spot market of butadiene rubber will maintain a high level of consolidation in the short term.