The market for BR in December fell first and then rose. According to the Commodity Market Analysis System of SunSirs, as of December 29th, the market price of BR in East China was 12,430 RMB/ton, an increase of 0.49% from the beginning of the month at 12,370 RMB/ton, and the low point during the cycle was 11,850 RMB/ton.

In early December, on the one hand, the maintenance equipment for raw material butadiene was restarted, and under supply pressure, the price of butadiene decreased, resulting in a decrease in the cost of BR; On the other hand, the downstream tire market is gradually entering the off-season, and demand is facing weak support from BR, resulting in an overall decrease in the price of BR. In late December, on the one hand, there was an increase in maintenance equipment, coupled with the sudden situation of Qilu Petrochemical equipment, the market's bullish sentiment increased, enterprise factory prices increased, market quotations significantly increased, and the market for BR rose.

In December, the overall production of BR slightly decreased, and the supply of BR tightened compared to the previous period.

In December, the price of butadiene experienced a significant decline in the early stage and a slight rebound at the end of the month, while the overall cost support for BR weakened. According to the Commodity Market Analysis System of SunSirs, as of December 29th, the price of butadiene was 8,575 RMB/ton, a decrease of 6.03% from 9,125 RMB/ton at the beginning of the month.

The natural rubber market rose in December, providing slight support for BR. According to the Commodity Market Analysis System of SunSirs, as of December 29th, the price was 13,060 RMB/ton, an increase of 3.00% from 12,680 RMB/ton at the beginning of the month, and the lowest point in the cycle was 12,300 RMB/ton.

Demand side: In December, tire production remained stable in the early stage and decreased in the later stage due to factors such as environmental protection and off-season, which weakened the support for rubber demand at the end of the month. It is understood that as of late December 2023, the operating load of all steel tires in rubber tire enterprises in Shandong region was 4.90%; The operating load of semi steel tires in domestic rubber tire enterprises is 7.8%.

Analysts from SunSirs believe that the raw material prices will rise at the end of the month, and the cost of BR will rise. Recently, BR plants such as Maoming Petrochemical and Qilu have shut down, resulting in a relatively tight supply of BR. However, the demand will weaken in the off-season, and it is expected that the spot market of BR will fluctuate and consolidate in the later period.

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