Recently (from September 11th to September 19th), the spot market for butadiene rubber has slightly increased, with the increase narrowing compared to early September. According to the Commodity Market Analysis System of Business Society, as of September 19th, the market price of butadiene rubber in East China was 13840 yuan/ton, an increase of 2.06% from last Monday’s 13560 yuan/ton.

Firstly, the price of raw material butadiene continues to rise, with strong cost support for cis-1,4-polybutadiene rubber. Secondly, the recent maintenance of Sichuan Petrochemical’s butadiene rubber plant has reduced the supply of butadiene rubber. Finally, stable downstream construction requires support from the superimposed market inventory at a medium to low level. During the supply cycle of butadiene rubber, the price will continue to increase by 700 yuan/ton, and the domestic butadiene rubber market merchants’ quotations will follow the trend. As of September 19th, the mainstream prices in the domestic butadiene rubber market are 13400-14200 yuan/ton.

The industry’s construction started slightly lower, and supply pressure has eased.

Recently (September 11th to September 19th), the butadiene market has continued to rise, and the cost support for cis-1,4-polybutadiene rubber has continued to strengthen. According to the Commodity Market Analysis System of Business Society, as of September 19th, the price of butadiene was 8747 yuan/ton, an increase of 1.80% from last Monday’s 8592 yuan/ton.

Demand side: In early September, the tire operating rate was basically stable, with rubber as the main support. It is understood that as of mid September 2023, the operating load of all steel tires for rubber tire enterprises in Shandong region is 6.4%; The operating load of semi steel tires for domestic rubber tire enterprises is 7.2%. Stacking the upstream and merchant stocking in the early stage of the double section provides certain support for cis-1,4-polybutadiene rubber.

Future Forecast: Business Society analysts believe that the price of butadiene rubber raw materials is running at a high level, and there is not much supply pressure. In addition, with the support of downstream demand, it is expected that the spot market of butadiene rubber will remain at a high level in the short term.