In May, the market for butadiene rubber saw a significant increase. According to the Commodity Market Analysis System of Business Society, as of May 31, the market price of butadiene rubber in East China was 14090 yuan/ton, an increase of 6.26% from the beginning of the month at 13260 yuan/ton.

In May, downstream tire production fluctuated slightly, with demand mainly supported by the rigid demand for butadiene rubber and downstream stocking based on demand; The market price of raw material butadiene fluctuates at a high level, while the cost center of butadiene rubber remains high; The overall load of butadiene rubber is not high, and the pressure on the supply side of butadiene rubber is not high; The futures price of butadiene rubber was significantly boosted by natural rubber, and the ex factory price of butadiene rubber enterprises gradually increased in late May. As of May 31st, the mainstream price of butadiene rubber market in East China was 13900~14300 yuan/ton.

In May, the production of butadiene rubber remained at a low level, and there was not much pressure on the market supply. As of the end of May, the domestic butadiene rubber plant construction was around 5.7%.

In May, the price of butadiene remained high, and there is still strong support for the cost of butadiene rubber. According to the Commodity Market Analysis System of Shengyishe, as of May 31st, the price of butadiene was 11875 yuan/ton, an increase of 1.39% from 11712 yuan/ton at the beginning of the month, and an increase of 7.10% from the low point in the cycle.

Demand side: Downstream tire production fluctuates slightly, providing rigid support for butadiene rubber. It is understood that as of the end of May, the operating load of semi steel tires in domestic tire enterprises was around 80%; The production of all steel tires by tire enterprises in Shandong region increased from 6.4% at the beginning of the month to 6.8% in the middle of the month, and then slightly decreased to around 6.6% at the end of the month; Downstream customers tend to stock up on demand, resulting in lackluster market transactions.

Market forecast: Business Society analysts believe that the price of raw material butadiene is still at a high level, and the cost support for butadiene rubber is still strong; The overall production of butadiene rubber remains low, and there is no pressure on the supply side of butadiene rubber; At present, downstream tire companies have experienced slight fluctuations in production, with the main support for the rigid demand for butadiene rubber. Overall, the butadiene rubber market is expected to rise and consolidate in the later stage under the support of cost and low production.