The market for butadiene rubber is weak and declining

Recently (5.20-5.27), the butadiene rubber market has been weak and declining. According to the commodity market analysis system of Shengyi Society, as of May 27th, the butadiene rubber market price in East China was 12230 yuan/ton, a decrease of 3.47% from 12670 yuan/ton on the 20th. The price of raw material butadiene has significantly decreased, and the cost center of butadiene rubber has shifted downwards; Shunding rubber production has slightly decreased, and supply pressure still exists; Downstream tire production is stable, providing essential support for butadiene rubber. As of May 27th, the mainstream prices for Qilu, Daqing, Sichuan, and Yangtze Shunding in East China were 12150-12400 yuan/ton.

Recently (5.20-5.27), the price of butadiene has significantly decreased, and the cost center of butadiene rubber has shifted downwards. According to the Commodity Market Analysis System of Shengyi Society, as of May 27th, the price of butadiene was 10200 yuan/ton, a decrease of 9.20% from 11233 yuan/ton on May 20th.
Recently (5.20-5.27), the production of domestic butadiene rubber equipment has slightly decreased to around 7.60%, indicating that the supply of butadiene rubber still exists.
Demand side: Recently (5.20-5.27), stable downstream tire production has provided essential support for the demand of the butadiene rubber market. As of May 23rd, the operating load of semi steel tires in domestic tire enterprises was around 7.8%; The operating load of all steel tires in tire enterprises in Shandong region is about 6.5%.; As of the week of May 23rd, domestic tire companies had 43 days of finished steel tire inventory, which remained unchanged on a week on week basis; The inventory of semi-finished steel tires has been 47 days, with an increase of 1 day in the weekly cycle ratio.
Market forecast: From a fundamental perspective, analysts from Shengyi Society believe that the raw material butadiene market will return to weakness, and the cost support for butadiene rubber will weaken; The stable start of downstream production provides strong support for the demand for butadiene rubber, and overall, it is expected that the butadiene rubber market will consolidate weakly in the later stage.