Shuntung Rubber Market Prices Fluctuate and Consolidate

August 11th news

Recent (August 1-11) butadiene rubber market trends have been fluctuating. According to the commodity market analysis system, as of August 11, the price of butadiene rubber in the East China region was 11,900 CNY/ton, a decrease of 0.50% from 11,960 CNY/ton on August 1. The price of raw material butadiene has been slightly adjusted, and the cost of butadiene rubber still has support; the production expectation for butadiene rubber is slightly increased; the downstream tire production is basically stable, providing necessary support for butadiene rubber. As of August 11, the main prices for Qilu, Daqing, Sichuan, and Yangzi butadiene rubber in the East China region were 11,800 to 12,200 CNY/ton.

Recently (August 1-11), the butadiene price has been fluctuating narrowly, and the cost of polybutadiene rubber still has support. According to the commodity market analysis system, as of August 11, the butadiene price in China was 9,083 CNY/ton, up 0.37% from 9,050 CNY/ton on the 1st. The highest point during the period was 9,100 CNY/ton, and the lowest point was 8,916 CNY/ton.

Recently (August 1 to August 11), China's polybutadiene facilities have been operating at around 68% capacity. As the polybutadiene rubber plants of Shandong Yihua, Qixiang Tengda, and Maoming Petrochemical are expected to restart this week, the supply of polybutadiene rubber is anticipated to increase slightly in the short term.

Demand side: Recently (August 1–August 11), downstream tire production remained generally stable, providing solid support for the demand of butadiene rubber. As of August 8, China's tire companies' semi-steel tire operating rate slightly increased to around 72%; in Shandong region, the all-steel tire operating rate of tire companies also slightly rose to approximately 63%.

Market forecast: From a fundamental perspective, analysts believe that butadiene prices will remain relatively stable, while the cost of polybutadiene rubber (BR) continues to provide support. Downstream tire production remains generally stable, with demand driven by essential needs. This week, some production facilities are scheduled to restart, increasing supply pressure on BR. However, as the traditional peak season approaches, BR prices are expected to fluctuate and gradually rise in the later period.