The BR market experienced a significant decline in February. According to the Commodity Market Analysis System of SunSirs, as of February 27th, the market price of BR in East China was 14,030 RMB/ton, a decrease of 6.47% from 15,000 RMB/ton at the beginning of February. The price of raw material butadiene has dropped significantly, and the cost center of BR has shifted downwards; The production of Shunding rubber has slightly decreased compared to the end of January, and the pressure on the supply side has slightly decreased; In mid to late February, downstream tire production increased significantly, providing strong support for the demand for BR. As of February 27th, the mainstream prices for Qilu, Daqing, Sichuan, and Yangtze Shunding in East China were 13,850-14,250 RMB/ton.

Since February, the price of butadiene has significantly decreased, and the cost center of BR has shifted downwards. According to the Commodity Market Analysis System of SunSirs, as of February 27th, the price of butadiene was 11,087 RMB/ton, a decrease of 12.44% from 12,662 RMB/ton at the beginning of February.

In February, the domestic production of BR plants remained at around 62%, and the supply pressure slightly decreased compared to January.

Demand side: Downstream tire production will increase after the holiday, mainly supporting the demand for BR market. As of February 20th, the operating load of semi steel tires in domestic tire enterprises is around 80%; The construction of all steel tires by tire enterprises in Shandong region has slightly increased to around 67% of the load.

From a fundamental perspective, analysts from SunSirs believe that after a sharp drop in butadiene prices in the short term, it will consolidate weakly, and the cost support of BR will continue to be weak; Post holiday downstream construction will increase; The production of BR remains at a low level, and overall, it is expected that the BR market will fluctuate and consolidate in the later stage.

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