Last week (7.24-7.31), the market of BR rose slightly. According to the commodity market analysis system of SunSirs, as of July 31, the price of BR in East China was 10,940 RMB/ton, up 1.58% from 10,770 RMB/ton last Monday. The price of raw butadiene continues to rise, and the cost of BR is supported; Recently, the supply price of BR has been raised by 200 RMB/ton, and the offer of merchants has risen slightly. According to the monitoring of the business community, as of July 31, the ex factory price of BR of Sinopec North China Sales Company was 10,900 RMB/ton. As of July 31, the mainstream market of BR in East China, such as Qilu, Yanshan, Yangzi, Dushanzi, Sichuan, Qixiang, Zhenhua, etc., reported 10,650-11,200 RMB/ton.

Last week (7.24-7.31), the BR plant basically operated normally, and the Daqing Petrochemical BR rubber plant was planned to restart. Overall, BR supply was loose.

Last week (7.24-7.31), the price of raw butadiene continued to rebound, and the cost focus of BR rebounded. According to the Commodity Market Analysis System of SunSirs, as of July 31st, the price of butadiene was 7,201 RMB/ton, an increase of 3.34% from last Monday's 6,968 RMB/ton.

Last week (7.24-7.31), the natural rubber market slightly increased. According to the Commodity Market Analysis System of SunSirs, as of July 31st, the price of natural rubber was 12,080 RMB/ton, an increase of 1.94% from last Monday's 11,850 RMB/ton.

Recently, the tire operating rate has fluctuated slightly, with a slight increase in half steel tire operating compared to the previous period, and a slight decrease in all steel tire operating compared to the previous period. The demand for rubber rigid support is stable. It is understood that as of late July 2023, the operating load of rubber tire enterprises in Shandong Province for all steel tires is 6.3%, and for half steel tires, it is around 7.2%.

SunSirs analysts believe that the high raw material price of BR is supported by its cost. In the second half of the month, many devices were restarted, and the pressure on the supply side of BR increased slightly; The downstream commencement fluctuates slightly, which is stable for BR support; To sum up, it is expected that BR will consolidate after rising in the short term. In the medium and long term, if the cost and demand continue to support, BR may have the opportunity to continue to rise.

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