Recently (7.29-8.5), the market price of BR has slightly declined. According to the commodity market analysis system of SunSirs, as of August 5th, the market price of BR in East China was 14,750 RMB/ton, a decrease of 2.12% from 15,070 RMB/ton on July 29th. The price of raw material butadiene has fallen slightly from a high level; BR production continues to remain low; Downstream tire production has slightly rebounded, overall inquiries are cautious, and there is resistance to high priced sources. BR futures have fallen slightly from their high levels, and market trading has been flat. On August 5th, PetroChina Northeast and East China Sales Companies lowered the ex factory price of BR by 300 RMB/ton, leading to a growing bearish sentiment in the market.

Recently (7.29-8.5), the price of butadiene has fallen from a high level, and the cost center of BR has slightly decreased, but overall there is still some support. According to the Commodity Market Analysis System of SunSirs, as of August 5th, the price of butadiene was 12,662 RMB/ton, a decrease of 1.84% from 12,900 RMB/ton on July 29th.

Recently (7.29-8.5), the construction of domestic BR plants has continued to maintain a low level, and as of August 5th, the construction of BR in China is around 5.5%. However, some maintenance devices are scheduled to restart in mid August, and the supply of BR is expected to slightly increase in the later period.

Demand side: Downstream tire production has slightly rebounded, and demand is supported by weak demand in the BR market. Downstream inquiries are resistant to high priced sources of goods. As of August 1st, the operating load of semi steel tires in domestic tire enterprises is around 7.9%; The operating load of all steel tires in tire enterprises in Shandong region is about 5.6%.

From a fundamental perspective, analysts from SunSirs believe that the price of raw material butadiene will fall from a high level, and the cost center of BR will slightly decrease; BR production remains at a low level, but some units are planned to restart in the later stage, and the supply side is expected to increase in the later stage; Recently, downstream tire companies have seen a slight increase in production, but they are cautious about purchasing BR. Overall, the BR market is still weak and mainly declining in the short term.

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