Recently (12.11-12.18), the market for butadiene rubber has slightly declined. According to the Commodity Market Analysis System of Business Society, as of December 18th, the market price of butadiene rubber in East China was 11860 yuan/ton, a decrease of 0.34% from 11900 yuan/ton on the 11th.

The price of raw material butadiene has significantly decreased, and the cost center of butadiene rubber has significantly declined. Downstream tire factories are operating steadily, and demand for butadiene rubber is slightly weak. In addition, the supply side has slightly decreased, and the pressure on butadiene rubber is slightly eased. The overall transaction volume of butadiene rubber in the off-season is light. As of December 18th, PetroChina Northeast Sales Company’s Daqing Shunding Northeast Warehouse has raised prices by 11600 yuan/ton, while the mainstream price of Shunding rubber in the East China region is reported at 11500-11900 yuan/ton; Private polybutadiene rubber costs 11200-11600 yuan/ton.

Recently (12.11-12.18), the construction of domestic butadiene rubber plants has slightly decreased, and Maoming Petrochemical’s butadiene rubber plant will be shut down for maintenance starting from the 13th.

Recently (12.11-12.18), the price of butadiene has significantly declined, and the cost center of butadiene rubber has decreased. According to the Commodity Market Analysis System of Business Society, as of December 18th, the price of butadiene was 8058 yuan/ton, a decrease of 4.15% from 8407 yuan/ton on December 11th.

Recently (12.11-12.18), the natural rubber market has fluctuated and fallen, and the atmosphere in the rubber market is weak. According to the Commodity Market Analysis System of Business Society, as of December 18th, the price was at 12380 yuan/ton, a decrease of 0.72% from 12470 yuan/ton on December 11th, and the lowest point in the cycle was at 12320 yuan/ton.

Demand side: Recently (12.11-12.18), tire production has been stable with all steel tires, and the demand for rubber is mainly weak. It is understood that as of mid December 2023, the operating load of all steel tires in rubber tire enterprises in Shandong Province was 5.9%; The operating load of semi steel tires in domestic rubber tire enterprises is 7.2%.

Market forecast: According to analysts from Business Society, the cost of butadiene rubber has significantly decreased and the demand has weakened during the off-season. Although Maoming Petrochemical plans to shut down for maintenance recently, the overall supply of butadiene rubber is still loose, and it is expected that the spot market of butadiene rubber will be weak and consolidate in the future.