Since July, the BR market has slightly declined. According to the Commodity Market Analysis System of SunSirs, as of July 31, the BR market price in East China was 15,070 RMB/ton, a decrease of 1.57% from 15,310 RMB/ton at the beginning of July. The price of raw material butadiene has dropped significantly, and the cost center of BR has also decreased; Shunding rubber production continues to remain low; The downstream tire production has recently declined, and the procurement of BR has been relatively light. As of July 31, the prices of BR in Daqing, Qilu, Yangtze and other cities in East China were around 15,000-15,300 RMB/ton, and private BR were around 14,500-14,900 RMB/ton.

Since July, the price of butadiene has significantly decreased, and the cost support for BR has weakened. According to the Commodity Market Analysis System of SunSirs, as of July 31st, the price of butadiene was 12,662 RMB/ton, a decrease of 7.57% from 13,700 RMB/ton at the beginning of July.

In July, the production of Shunding rubber remained at a low level. Qixiang Shunding rubber plant was shut down for maintenance, Qilu Petrochemical Shunding rubber plant resumed normal operation, Zhejiang Chuanhua added a 120,000 ton/year Shunding rubber plant and put it into operation, and Yantai Haopu Shunding rubber plant plans to shut down for maintenance in early August.

On the demand side: Since mid July, downstream tire production has been declining, and in the short term, there is a certain drag on demand in the BR market. Downstream inquiries are relatively cautious. As of July 24th, the operating load of semi steel tires in domestic tire enterprises is around 79%; The operating load of all steel tires in tire enterprises in Shandong region is about 54%.

From a fundamental perspective, analysts from SunSirs believe that the price of raw material butadiene will significantly decrease, and the cost center of BR will decrease; The production of BR remains at a low level, and there is not much pressure on the market supply; Currently, downstream tire companies are experiencing a decline in production, which is unfavorable for the demand for BR. Overall, the BR market is expected to continue a weak and volatile trend in the short term.

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