In February, the market for butadiene rubber saw a significant increase. According to the Commodity Market Analysis System of Business Society, as of February 29th, the market price of butadiene rubber in East China was 13230 yuan/ton, an increase of 6.95% from the beginning of the month at 12370 yuan/ton.

After the holiday, the external price of butadiene has risen, driven by the increase in supply prices of production enterprises. Under the dual positive impact, the butadiene market has a strong upward atmosphere, and the cost center of butadiene rubber has significantly increased; During the holiday period, downstream tire production was low and demand was weak. After the holiday, downstream tire production increased, providing certain support for butadiene rubber; In February, the overall production of butadiene rubber decreased, and the supply of butadiene rubber tightened compared to the previous period; Driven by comprehensive factors, the factory prices of enterprises have increased, and market quotations have significantly increased, leading to a rise in the market price of butadiene rubber. As of February 29th, the mainstream report of the butadiene rubber market in East China is 13100~13500 yuan/ton; Private polybutadiene rubber costs 13100~13300 yuan/ton

In February, the overall production of butadiene rubber decreased, and the supply of butadiene rubber tightened compared to the previous period. There are still plans for maintenance of the butadiene rubber unit in March, and the supply of butadiene rubber is expected to remain tight in the later stage.

In February, the price of butadiene increased significantly, and the cost support for butadiene rubber strengthened. According to the commodity market analysis system of Shengyishe, as of February 29th, the price of butadiene was 11095 yuan/ton, an increase of 13.72% from the beginning of the month’s 9756 yuan/ton.

Demand side: During the holiday season, downstream tire production was low, and the demand side was weak. After the holiday, downstream tire production increased, providing certain support for butadiene rubber. It is understood that as of February 23, 2024, the production capacity of all steel tires in Shandong region was 4.3%, and the production capacity of semi steel tires in China was 6.4%.

Market forecast: Business Society analysts believe that raw material prices will continue to rise, and the cost support for butadiene rubber will strengthen. Some equipment will be shut down for maintenance, while there are still other maintenance plans in the future. The pressure on the supply side of butadiene rubber is expected to further decrease, and downstream tire production will increase compared to the holiday period. Overall, the spot market for butadiene rubber will continue to rise in the future.