Recently (from March 12th to March 20th), the market price of butadiene rubber has surged significantly. According to the commodity market analysis system of Business Society, as of March 20th, the market price of butadiene rubber in East China was 13940 yuan/ton, an increase of 4.97% from the 13280 yuan/ton on March 12th. The high price consolidation of raw material butadiene, the decline in the supply of butadiene rubber, and the high production of downstream tires have formed strong favorable conditions for the cost and supply of butadiene rubber, resulting in a significant increase in the price of butadiene rubber.

Recently (3.12~3.20), the price of butadiene has stabilized at a high level, with strong cost support for butadiene rubber. According to the Commodity Market Analysis System of Business Society, as of March 20th, the price of butadiene was 11532 yuan/ton, an increase of 0.03% from March 12th’s 11528 yuan/ton.

In the near future (3.12-3.20), the overall production of butadiene rubber has remained at a low level of around 6.3%, and the supply of butadiene rubber is expected to be tight in the later stage.

Demand side: In the near future (3.12-3.20), downstream tires will start operating at a high level, providing certain support for butadiene rubber. It is understood that as of March 14th, the operating load of semi steel tires in domestic tire enterprises was around 790%; The operating load of all steel tires in tire enterprises in Shandong region is close to 70%; Overall, there is some support for the supply and demand of polybutadiene rubber, but as the price of polybutadiene rubber rises, downstream consumers may resist high prices and procurement efforts may slow down.

Market forecast: Business Society analysts believe that the price of raw material butadiene is still at a high level, and the cost support for butadiene rubber is strong; While some devices are being shut down and reduced in load, there are still other maintenance plans in the later stage, and the expectation of starting production of butadiene rubber is further reduced; The cost and commencement of production support the market for butadiene rubber. However, the current downstream resistance to the high priced supply of butadiene rubber has slowed down, putting pressure on the butadiene rubber market. Overall, the current butadiene rubber market is expected to maintain a high consolidation level in the short term.