August Butadiene Rubber Market Prices Slightly Increased in China

August 28 update

In August, the butadiene rubber market in China showed a slight increase. According to the commodity market analysis system, as of August 28, the price of butadiene rubber in the East China region was 12,200 CNY/ton, up 2.01% from 11,960 CNY/ton at the beginning of the month. The price of the raw material butadiene fluctuated and increased, shifting the cost focus of butadiene rubber upward; the production of butadiene rubber showed minor fluctuations, with no significant supply pressure; the downstream tire production slightly improved, mainly supported by the rigid demand for butadiene rubber. As of August 28, the main prices for Qilu, Daqing, Sichuan, and Yangzi butadiene rubber in the East China region were 11,900 to 12,400 CNY/ton.

In August, the butadiene price in China fluctuated and slightly increased, with the cost support for polybutadiene rubber strengthening. According to the commodity market analysis system, as of August 28, the butadiene price was 9,283 CNY/ton, up 2.58% from 9,050 CNY/ton at the beginning of the month.

In August, the butadiene rubber plants in China experienced minor fluctuations. By the end of August, the operating rate of butadiene rubber in China was around 69%, with no significant supply pressure.

Demand side: In August, the downstream tire production slightly increased, supporting the demand for butadiene rubber. As of August 22, the semi-steel tire production of Chinese tire enterprises slightly increased to around 74%; the all-steel tire production of tire enterprises in Shandong region slightly increased to about 65%.

Market Forecast: From a fundamental perspective, analysts believe that with modest increases in raw material prices and a slight uptick in downstream tire production capacity—coupled with the approaching peak season—the market anticipates that solution polymerized butadiene rubber (SBR) prices may continue to fluctuate upward in the near term.