In April, the butadiene rubber market rebounded slightly from a low point. According to data monitoring by Business Society, as of April 27th, the price of butadiene rubber was 11380 yuan/ton, an increase of 1.34% from 11220 yuan/ton at the beginning of the month. The price of raw material butadiene has slightly increased, and the cost support for cis-1,4-polybutadiene rubber has strengthened; In April, downstream tire factories started operating with a slight fluctuation, and support for cis-1,4-polybutadiene rubber was just needed but weak; In late April, the ex factory price of cis-1,4-polybutadiene rubber increased slightly by 100 yuan/ton, and the market price of cis-1,4-polybutadiene rubber rose slightly.

Supply side: In April, multiple enterprises of polybutadiene rubber stopped for maintenance, and the pressure on the supply side of polybutadiene rubber was relieved.

Cost side: In April, the price of butadiene slightly increased, while the cost side of butadiene rubber significantly decreased. According to the Commodity Market Analysis System of Business Society, as of April 27th, the price of butadiene was 8851 yuan/ton, an increase of 3.51% from the 8551 yuan/ton at the beginning of the month.

In April, the natural rubber market fell first and then rose, but remained at a low level, with a relatively negative impact on butadiene rubber. As of April 27th, the price was at 11530 yuan/ton, an increase of 0.03% from 11526 yuan/ton at the beginning of the month, and the low point during the cycle was at 11210 yuan/ton.

Demand side: Downstream tire production in April slightly increased compared to March, with a strong demand for rubber support but no significant increase. It is understood that as of mid April 2023, the operating load of all steel tires for rubber tire enterprises in Shandong region is 6.7%; The operating load of semi steel tires for domestic rubber tire enterprises is 7.3%.

Future Forecast: Business Society analysts believe that the raw material price has slightly increased, and the cost of butadiene rubber has risen. In addition, many enterprises have significantly alleviated the pressure on production and supply, and the small fluctuations in downstream construction have a strong demand for support for butadiene rubber. In the short term, there is support for the butadiene rubber market, but there is still a lack of significant improvement in downstream construction. In addition, the production of Zhejiang Petrochemical’s butadiene rubber plant has also increased supply pressure to a certain extent, It is expected that there will be a significant upward trend in the later stage of polybutadiene rubber.