November Butadiene Rubber Market Trend Fluctuates and Declines in China

November 28th, news

In November, the butadiene rubber market in China experienced a fluctuating downward trend. According to the commodity market analysis system, as of November 28th, the price of butadiene rubber in the East China region was 10,680 CNY/ton, a decrease of 4.22% from 11,150 CNY/ton at the beginning of the month.

Since November, the recent butadiene inventory has remained high, and with international crude oil fluctuating at low levels, the price of butadiene as a raw material has weakened, leading to a downward shift in the cost center of polybutadiene rubber. Additionally, in November, the operating rate of polybutadiene rubber in China has slightly fluctuated around 70%. The downstream tire industry mainly supports the demand for polybutadiene rubber. Under the combined influence of these factors, the price of polybutadiene rubber has been declining in November. As of November 28, the mainstream prices of Qilu, Daqing, Sichuan, and Yangzi polybutadiene in the East China region were reported at 10,600 to 10,800 CNY per ton.

In November, the butadiene price in China showed a weak and fluctuating downward trend, dragging down the styrene-butadiene rubber market due to cost factors. According to the commodity market analysis system, as of November 28, the butadiene price was 7016 CNY/ton, a decrease of 6.65% from 7516 CNY/ton at the beginning of the month.

In November, the operation rate of polybutadiene rubber in China fluctuated slightly, generally staying around 70%.

Demand side: In November, the operation rate of downstream semi-steel tire production was stable in the early part of the month and slightly decreased later, providing support to the butadiene rubber market. As of November 22, the operation rate of semi-steel tire production in Chinese tire enterprises was around 70%; the operation rate of all-steel tire production in Shandong region tire enterprises was about 62%.

Market Forecast: From a fundamental perspective, analysts believe that with ample supply of the raw material butadiene and a generally weak market trend, downstream tire production is experiencing slight fluctuations. Overall, it is expected that styrene-butadiene rubber prices will remain weak and volatile in the coming period.