This week (11.20-11.27), the market for butadiene rubber was weak and fell. According to the Commodity Market Analysis System of Business Society, as of November 27th, the market price of butadiene rubber in East China was 12290 yuan/ton, a decrease of 0.65% from last Monday’s 12370 yuan/ton.

The price of raw material butadiene has stabilized at a high level, and there is still support for the cost of butadiene rubber. Downstream tire factories have slightly increased their production compared to mid November, and demand has improved in the face of support for butadiene rubber. On the 27th, some merchants reported a slight increase in prices, but the supply of butadiene rubber is relatively loose, and the overall market for butadiene rubber is still weak. As of November 27th, PetroChina Northeast Sales Company’s Daqing Shunding Northeast Warehouse has raised its price by 12000 yuan/ton, while the mainstream prices in the Shunding rubber market in eastern China, such as Daqing, Sichuan, Yangtze, Yanshan, and Qilu, are reported at 11900-12500 yuan/ton; Private polybutadiene rubber costs 11600-11800 yuan/ton.

This week (11.20-11.27), the domestic butadiene rubber plant started operating with narrow fluctuations, and the Qixiang Tengda butadiene plant operated with reduced load; The Shunding unit of Maoming Petrochemical is scheduled to be shut down for maintenance in December.

This week (11.20-11.27), the price of butadiene stabilized at a high level, and the cost of butadiene rubber still has support. According to the Commodity Market Analysis System of Business Society, as of November 27th, the price of butadiene was at 9538 yuan/ton, a decrease of 0.03% from last Monday’s 9541 yuan/ton, and the lowest point in the cycle was 9493 yuan/ton.

This week (11.20-11.27), the natural rubber market slightly declined and the price difference of butadiene rubber slightly narrowed, but the impact on butadiene rubber is still more significant. According to the Commodity Market Analysis System of Shengyishe, as of November 27th, the price was 12940 yuan/ton, a decrease of 1.60% from last Monday’s 13150 yuan/ton.

Demand side: Starting from November 20th to November 27th this week, all steel tires slightly increased, providing some support for rubber production. But currently, the demand for tires is gradually entering the off-season at the end of the year, and tire companies are gradually accumulating inventory. The expectation of tire production in the later stage will decrease, and the impact on rubber is biased. It is understood that as of late November 2023, the operating load of all steel tires in rubber tire enterprises in Shandong region was 640%; The operating load of semi steel tires in domestic rubber tire enterprises is 7.8%.

Market forecast: Business Society analysts believe that in the short term, the narrow fluctuations in raw material prices will continue to support the cost side of butadiene rubber, and the demand side is expected to weaken in the off-season. However, Maoming Petrochemical has a parking and maintenance plan in the later stage, and the supply side of butadiene rubber is also expected to decline. It is expected that the spot market of butadiene rubber will mainly fluctuate in the later stage.