The market for BR slightly declined in April. According to the Commodity Market Analysis System of SunSirs, as of April 30th, the market price of BR in East China was 13,260 RMB/ton, a decrease of 2.57% from 13,610 RMB/ton at the beginning of the month.
In April, the market price of butadiene remained high, while the cost center of BR remained high; The overall load of BR is not high, and the pressure on the supply side of BR is not high; Downstream tire production has slightly declined from a high level, and demand has weakened in the face of rigid demand support for BR. In addition, downstream resistance to high priced sources has led to a high level decline in BR production. As of April 30th, the mainstream price of BR market in East China is 13,200-13,400 RMB/ton.
In the first half of April, units such as Yantai Haopu and Zhejiang Chuanhua resumed operation, resulting in a slight increase in domestic production of BR; In the second half of April, Weite, Qixiang and other BR plants were shut down for maintenance, resulting in a slight decrease in domestic BR production. As of the end of April, the production rate of BR plants was around 55%.
In April, the price of butadiene remained high, and there is still strong support for the cost of BR. According to the Commodity Market Analysis System of SunSirs, as of April 30th, the price of butadiene was 11,712 RMB/ton, an increase of 1.63% from 11,525 RMB/ton at the beginning of the month.
Demand side: Downstream tire production has slightly weakened, weakening support for BR. It is understood that as of the end of April, the operating load of semi steel tires in domestic tire enterprises was around 80%; The production of all steel tires by tire companies in Shandong region increased from 6.8% at the beginning of the month to around 7.1% in the middle of the month, and then continued to decline to 6.4% at the end of the month; Downstream customers tend to stock up on demand, resulting in lackluster market transactions.
SunSirs analysts believe that the price of raw material butadiene is still at a high level, and the cost support for BR is still strong; The overall production of BR remains at a low level, and there are also plans for later maintenance and restart, resulting in variables in the supply of BR; At present, downstream tire enterprises have experienced slight fluctuations in production, with the main support for the rigid demand of BR. Overall, the BR market may narrow down in the later stage under the support of cost and low production.
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