In September, the butadiene rubber market showed a weak and fluctuating downward trend

September 29, News

In September, the butadiene rubber market showed a weak and fluctuating downward trend. According to the commodity price analysis system, as of September 29, the price of butadiene rubber in the East China region was 11,750 CNY/ton, a decrease of 3.69% from 12,200 CNY/ton at the beginning of the month.

On one hand, the price of butadiene, the raw material, has been fluctuating and declining, negatively impacting the cost of polybutadiene rubber; on the other hand, the production of polybutadiene rubber has slightly decreased, alleviating the supply pressure. The downstream tire industry's operation has shown minor fluctuations, mainly providing rigid demand support for polybutadiene rubber. As of September 29, the mainstream prices for Qilu, Daqing, Sichuan, and Yangzi polybutadiene in the East China region were reported at 11,650 to 12,000 CNY per ton.

In September, the butadiene price weakened and declined, leading to a weakening cost support for polybutadiene rubber. According to the commodity market analysis system, as of September 29, the price of butadiene in China was 8,990 CNY/ton, a decrease of 3.51% from 9,316 CNY/ton at the beginning of the month.

Affected by the shutdown and maintenance of several butadiene rubber plants, the operation rate of butadiene rubber plants in China slightly decreased in September, with the operating rate of butadiene rubber in China around 66% by the end of September.

Demand side: In September, downstream tire manufacturers maintained steady operations with a slight overall increase, providing solid support for the butadiene rubber market. As of September 28, Chinese tire companies had semi-steel tire production capacity operating at around 73%; meanwhile, tire producers in Shandong province saw a modest rise in all-steel tire output, reaching approximately 66%.

Future forecast: From a fundamental perspective, analysts believe that the supply of butadiene, the raw material, is abundant and the market trend is mainly weak. The operation rate of downstream tire production fluctuates slightly, and in October, the butadiene rubber facilities at Yangzi Qilu and others are scheduled for maintenance shutdowns. Overall, it is expected that the butadiene rubber will consolidate with fluctuations.