The domestic butadiene rubber market shows a slight weakening

December 01 news

Recently (Nov 20 to Nov 30), the butadiene rubber market in China has shown a slight decline. According to the commodity market analysis system, as of November 30, the price of butadiene rubber in the East China region was 10,680 CNY/ton, a decrease of 1.93% from 10,890 CNY/ton on November 20. On one hand, the low price of the raw material butadiene has led to weak cost support for butadiene rubber; maintenance and restarts are occurring simultaneously, with the operating rate of butadiene rubber basically maintained at around 70%. The operating rate of downstream tire production has slightly decreased, weakening the support for butadiene rubber. The fundamentals of butadiene rubber are relatively weak. As of November 30, the main quotations for butadiene rubber from Qilu, Daqing, Sichuan, and Yangzi in the East China region were 10,600 to 10,800 CNY/ton.

Recently (11.20~11.30), butadiene prices in China have been operating at a low level, with the cost support for polybutadiene rubber being relatively weak. According to the commodity market analysis system, as of November 30, the price of butadiene was 7,016 CNY/ton, a decrease of 3.81% from 7,266 CNY/ton on the 20th.

Recently (11.20~11.30), the operating rate of butadiene rubber plants in China has been around 70%, with Zhejiang Petrochemical's high-cis butadiene rubber plant having restarted after feeding, and Maoming Petrochemical's butadiene rubber plant undergoing routine maintenance.

Demand side: Recently (Nov. 20–30), downstream tire production has slightly declined, weakening support for the cis-1,4-polybutadiene rubber market. As of November 27, Chinese tire companies’ semi-steel tire production capacity utilization rate stood at around 68%; in Shandong Province, all-steel tire production capacity utilization rate among tire companies was approximately 62%.

Market Forecast: From a fundamental perspective, analysts believe that with ample supply of the raw material butadiene and an overall weak market trend, downstream tire production is slightly declining. Taken together, we expect styrene-butadiene rubber prices to remain volatile and weak in the near term.