Butadiene Rubber Market Trend Weakly Consolidates

September 17, News

Recently (9.8~9.17), the butadiene rubber market in China has been consolidating weakly. According to the commodity market analysis system, as of September 17th, the price of butadiene rubber in the East China region was 11,950 CNY/ton, a decrease of 2.13% from 12,210 CNY/ton on September 8th. The price of the raw material, butadiene, has slightly decreased, weakening the cost support for butadiene rubber; the production of butadiene rubber has slightly declined; the operation of downstream tire factories has remained basically stable, providing some support for the demand for butadiene rubber, but there is resistance to high-priced supplies, and merchants are operating cautiously. As of September 17th, the main quotations for Qilu, Daqing, Sichuan, and Yangzi butadiene rubber in the East China region were between 11,850 and 12,100 CNY/ton.

Recently (9.8~9.17), the price of butadiene has slightly decreased, and the cost support for polybutadiene rubber has weakened. According to the commodity market analysis system, as of September 17, the price of butadiene in China was 9,266 CNY/ton, a decrease of 1.42% from 9,400 CNY/ton on September 8.

Recently (9.8~9.17), the operating rate of butadiene plants in China has slightly decreased to around 73%. The Haopu butadiene plant has been shut down for maintenance, and the Maoming plant has reduced its operation to a single line. In the future, Qilu and other butadiene plants have planned maintenance, leading to an expected tightening of the butadiene rubber supply.

Demand side: Recently (Sept. 8–17), downstream tire production remained generally stable, providing solid support for the demand-driven market in cis-1,4-polybutadiene rubber. As of September 11, Chinese tire companies saw semi-steel tire production capacity slightly increase to around 73%, while tire manufacturers in Shandong province experienced a minor decline in all-steel tire output, falling to approximately 64%.

Market Forecast: From a fundamental perspective, analysts note that while downstream tire production remains stable, some cis-1,4-polybutadiene rubber (BR) plants are set to shut down for maintenance in the coming period. This is expected to provide moderate support to both demand and supply for BR. On the other hand, declining raw material prices have led downstream buyers to approach suppliers cautiously when inquiring about higher-priced materials, creating some downside pressure on the BR market. Overall, it’s anticipated that BR prices may stabilize before gradually inching higher in the near term.