1、 Price trend

According to the monitoring of the commodity market analysis system of Shengyishe, the butyl rubber market has stabilized this week. As of May 24th, the mainstream price of domestic butyl rubber (1751) was 17600 yuan/ton, which is unchanged from last week and a decrease of 260 yuan or 1.46% compared to May 1st.

2、 Market analysis

Cost side:

Cost side: The isobutene market has seen a narrow decline this week, with the mainstream price of isobutene (≥ 99, loose water) in China as of May 23 at 12050 yuan/ton, a decrease of 150 yuan or 1.23% compared to last week. The upstream MTBE market continued to operate weakly, with international oil prices falling narrowly overall, weakening support for the isobutene market. It is expected that the recent isobutene market will be weak and mainly consolidation.

Supply and demand side:

The power consumption of downstream steel tires has slightly increased compared to last week, with a load rate of around 6.5 floors for the entire steel tire industry and around 8 floors for the semi steel tire industry. This week, the steel tire industry is operating at a high level, and some companies in the steel tire industry have parking and maintenance plans. The load rate of the steel tire industry will decrease. The demand for raw materials has decreased.

3、 Future Market Forecast

The market for butyl rubber has stabilized this week. The narrow decline in the upstream isobutene market has weakened support for the butyl rubber market. On the supply and demand side, imported goods are gradually arriving at the port to fill in inventory. With the arrival of summer, butyl rubber is facing seasonal production reductions. In the downstream steel tire industry, with maintenance plans in place, the industry’s load rate may decrease, leading to a decrease in demand for upstream raw materials. The trend performance under the long short game is not obvious, and it is expected that the recent butyl rubber market will mainly fluctuate and consolidate.