Recently (12.11-12.18), the market for BR has slightly declined. According to the Commodity Market Analysis System of SunSirs, as of December 18th, the market price of BR in East China was 11,860 RMB/ton, a decrease of 0.34% from 11,900 RMB/ton on the 11th.
The price of raw material butadiene has significantly decreased, and the cost center of BR has significantly declined. Downstream tire factories are operating steadily, and demand for BR is slightly weak. In addition, the supply side has slightly decreased, and the pressure on BR is slightly eased. The overall transaction volume of BR in the off-season is light. As of December 18th, PetroChina Northeast Sales Company's Daqing Shunding Northeast Warehouse has raised prices by 11,600 RMB/ton, while the mainstream prices in the Shunding rubber market in eastern China, such as Daqing, Sichuan, Yangtze, Yanshan, and Qilu, are reported at 11,500-11,900 RMB/ton; Private polyBR costs 11,200-11,600 RMB/ton.
Recently (12.11-12.18), the construction of domestic BR plants has slightly decreased, and Maoming Petrochemical's BR 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 BR has decreased. According to the Commodity Market Analysis System of SunSirs, as of December 18th, the price of butadiene was 8,058 RMB/ton, a decrease of 4.15% from 8,407 RMB/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 SunSirs, as of December 18th, the price was at 12,380 RMB/ton, a decrease of 0.72% from 12,470 RMB/ton on December 11th, and the lowest point in the cycle was at 12,320 RMB/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%.
According to analysts from SunSirs, the cost of BR 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 BR is still loose, and it is expected that the spot market of BR will be weak and consolidate in the future.
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