Recently (July 1st to July 8th), the market price of BR in East China has narrowed down. According to the Commodity Market Analysis System of SunSirs, as of July 8th, the market price of BR in East China was 15,280 RMB/ton, a decrease of 0.20% from 15,310 RMB/ton on July 1st. Narrow range consolidation of high prices for raw material butadiene; The production of BR continues to remain low; Downstream tire production has been generally stable in recent days, but overall inquiries are cautious and slightly resistant to high priced sources. The futures of BR have consolidated at a high level, and market trading is flat.

Recently (July 1st to July 8th), the price of butadiene has stabilized at a high level, and the cost support for BR remains strong. According to the Commodity Market Analysis System of SunSirs, as of July 8th, the price of butadiene was 13,725 RMB/ton, an increase of 0.18% from 13,700 RMB/ton on July 1st.

Recently (July 1st to July 8th), the production of domestic BR plants remained at a low level, and as of July 7th, the production of domestic BR was around 60%.

Demand side: Downstream tire production is temporarily stable, with demand facing strong support from the BR market. Downstream inquiries are resistant to high priced sources, and the price of BR is consolidating at a high level. As of July 7th, the operating load of semi steel tires for domestic tire enterprises is around 79%; The operating load of all steel tires for tire enterprises in Shandong region is about 62%.

From a fundamental perspective, analysts from SunSirs believe that the price of raw material butadiene is still at a high level, and the cost support for BR is strong; The production of BR remains low, and the market supply is tight; Recently, downstream tire companies have temporarily stabilized their production, but there is still a fear of high prices for BR. Overall, the BR market has remained strong in the near future under the support of cost and low production. We still need to pay attention to the downstream stocking situation in the future.

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