Last week (August 19-26), the BR market rebounded slightly in China. According to the monitoring of SunSirs, as of August 26, the domestic BR price was 12,580 RMB/ ton, a slight increase of 0.24% over the 2,550 RMB/ ton on August 19. Since June, BR has been falling all the way to the low level of the year in the middle of August. Then, the market was in a wait-and-see state. With the petrochemical manufacturers' slight increase in the factory price last week, many merchants' offers rose slightly. However, from the perspective of industrial chain fundamentals, the downstream demand was still low, and the cost remained low, and the market was still weak; Last week, the ex factory price of BR rubber of Sinopec Sales Company was stable. As of August, the ex factory price of Qilu BR of Sinopec North China sales company was 12,400 RMB/ ton.
Last week (8.19-8.26), the butadiene market fell slightly, and the cost of butadiene rubber continued to weaken. According to the monitoring of SunSirs, as of August 26, the price of butadiene was 7,795 RMB/ ton, down 1.03% from 7,876 RMB/ ton on August 19.
Last week, the natural rubber market fluctuated and consolidated, and the support for BR was not strong. According to the monitoring of SunSirs, as of August 26, the price of natural rubber was 12,044 RMB/ ton, down 0.13% from 12,060 RMB/ ton on August 19.
The downstream tire starts at a low level, with the half steel tire starting at around 65%, and the full steel tire starting at around 55%. The demand for rubber is weak, and the market deals are mainly small.
Market forecast: SunSirs analysts believe that the raw material butadiene is running at a low level and the natural rubber price is fluctuating at a low level; The new production of Qixiang and the restart of Maoming Petrochemical increased the supply side pressure in August. It is comprehensively expected that the price of BR will continue to be weak in China in the later period.
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