February Butadiene Rubber Market Trend Weakly Fluctuates in China

February 27 News

In February, the butadiene rubber market in China showed a weak and fluctuating trend. According to the commodity market analysis system, as of February 27th, the price of butadiene rubber in the East China region was 13,010 CNY/ton, a decrease of 1.81% from 13,250 CNY/ton at the beginning of the month. The main factors affecting the market were increased inventory, a decline in raw material prices, and insufficient downstream demand after the holiday.

In early February, as the Chinese New Year approached, the market for butadiene rubber nearly came to a halt, and prices slightly weakened. On the first day after the holiday, prices surged significantly due to the influence of natural rubber and crude oil in the international market. However, with downstream inquiries remaining cautious and market transactions stagnant, coupled with post-holiday inventory increasing to over 50,000 tons, prices subsequently fell from their high levels.

In February, the butadiene price in China saw a significant decline, and the cost support for polybutadiene rubber was weak. According to the commodity market analysis system, as of February 27, the butadiene price was 10,000 CNY/ton, down 5.06% from 10,533 CNY/ton at the beginning of the month.

In February, the operation of polybutadiene rubber plants in China remained at a high level, and inventories increased.

After the holiday, the resumption of downstream tire production in China is slow, with inquiries for rubber mainly consisting of small orders and a wait-and-see attitude, providing weak support to the butadiene rubber market. Although there are expectations for export orders, they have not yet provided substantial impetus. Overall, the demand for butadiene rubber still needs to recover.

Outlook: From a fundamental perspective, analysts believe that the price of butadiene, a raw material, has decreased, and the downstream tire production has not yet recovered. The supply pressure for polybutadiene rubber is relatively high. Overall, it is expected that in the short term, the price of polybutadiene rubber will fluctuate and consolidate.