Recently (7.29-8.5), the market price of butadiene rubber has slightly declined. According to the commodity market analysis system of Shengyi Society, as of August 5th, the market price of butadiene rubber in East China was 14750 yuan/ton, a decrease of 2.12% from 15070 yuan/ton on July 29th. The price of raw material butadiene has fallen slightly from a high level; Shunding rubber production continues to remain low; Downstream tire production has slightly rebounded, overall inquiries are cautious, and there is resistance to high priced sources. Shunding rubber futures have fallen slightly from their high levels, and market trading has been flat. On August 5th, PetroChina Northeast and East China Sales Companies lowered the ex factory price of butadiene rubber by 300 yuan/ton, leading to a growing bearish sentiment in the market.
| Gamma-PGA (gamma polyglutamic acid) |
Recently (7.29-8.5), the price of butadiene has fallen from a high level, and the cost center of butadiene rubber has slightly decreased, but overall there is still some support. According to the Commodity Market Analysis System of Shengyi Society, as of August 5th, the price of butadiene was 12662 yuan/ton, a decrease of 1.84% from 12900 yuan/ton on July 29th.
Recently (7.29-8.5), the construction of domestic butadiene rubber plants has continued to maintain a low level, and as of August 5th, the construction of butadiene rubber in China is around 5.5%. However, some maintenance devices are scheduled to restart in mid August, and the supply of butadiene rubber is expected to slightly increase in the later period.
Demand side: Downstream tire production has slightly rebounded, and demand is supported by weak demand in the butadiene rubber market. Downstream inquiries are resistant to high priced sources of goods. As of August 1st, the operating load of semi steel tires in domestic tire enterprises is around 7.9%; The operating load of all steel tires in tire enterprises in Shandong region is about 5.6%.
Market forecast: From a fundamental perspective, analysts from Shengyi Society believe that the price of raw material butadiene will fall from a high level, and the cost center of butadiene rubber will slightly decrease; Shunding rubber production remains at a low level, but some units are planned to restart in the later stage, and the supply side is expected to increase in the later stage; Recently, downstream tire companies have seen a slight increase in production, but they are cautious about purchasing Shunding rubber. Overall, the Shunding rubber market is still weak and mainly declining in the short term.
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