The butadiene rubber market in May first rose and then fell. According to the commodity market analysis system of Shengyi Society, as of May 29th, the butadiene rubber market price in East China was 11910 yuan/ton, a decrease of 0.33% from 11950 yuan/ton at the beginning of the month and a decrease of 6.81% from the highest point of 12780 yuan/ton in the cycle. The price of raw material butadiene first rose and then fell, and overall it rose; Shunding rubber production has significantly increased compared to April, but supply pressure still exists; The downstream tire production increased significantly at the beginning of the month, providing strong support for the demand for butadiene rubber. In late May, Shunding rubber returned to weakness, with supply prices gradually decreasing and market quotes falling. As of May 29th, the mainstream prices for Qilu, Daqing, Sichuan, and Yangtze Shunding in East China were 11850-12200 yuan/ton.
In May, the price of butadiene first rose and then fell, and overall it rose. The cost support of butadiene rubber weakened at the end of the month. According to the Commodity Market Analysis System of Shengyi Society, as of May 28th, the price of butadiene was 9800 yuan/ton, an increase of 8.09% from 9066 yuan/ton at the beginning of the month, and a decrease of 14.29% from the high point of 11433 yuan/ton during the cycle.
In May, there was a significant increase in the early stage of the domestic butadiene rubber plant construction, followed by a slight increase in the later stage. The overall construction has increased significantly compared to April. As of May 29th, the domestic butadiene rubber plant construction is around 7.6%, and supply pressure still exists.
Demand side: After the Labor Day at the beginning of the month, downstream tire production increased significantly, and later maintained a slight fluctuation trend, mainly supporting rubber demand. As of May 23rd, the operating load of semi steel tires in domestic tire enterprises was around 7.8%; The operating load of all steel tires in tire enterprises in Shandong region is about 6.5%.; As of the week of May 23rd, domestic tire companies had 43 days of finished steel tire inventory, which remained unchanged on a week on week basis; The inventory of semi-finished steel tires has been 47 days, with an increase of 1 day in the weekly cycle ratio.
Market forecast: From a fundamental perspective, analysts from Shengyi Society believe that the raw material butadiene market will rise and fall, and the expected cost support for butadiene rubber will weaken; The stable start of downstream production provides strong support for the demand for butadiene rubber, and there is still pressure on the supply side of butadiene rubber. Overall, it is expected that the butadiene rubber market will consolidate weakly in the later stage.