Recently (7.17-7.29), the market price of Shunding rubber has slightly declined. According to the commodity market analysis system of Shengyi Society, as of July 29, the market price of Shunding rubber in East China was 15070 yuan/ton, a decrease of 0.59% from 15160 yuan/ton on July 17. The price of raw material butadiene has fallen slightly from a high level; Shunding rubber production continues to remain low; Downstream tire production slightly decreased, overall inquiries were cautious, and there was slight resistance to high priced sources. Shunding rubber futures fell slightly from their high levels, and market trading remained flat.

Recently (7.17-7.29), the price of butadiene has fallen from a high level, and the cost center of butadiene rubber has slightly decreased, but overall there is still support. According to the Commodity Market Analysis System of Shengyi Society, as of July 29th, the price of butadiene was 12900 yuan/ton, a decrease of 1.71% from 13125 yuan/ton on July 17th.

Recently (7.17-7.29), the construction of domestic butadiene rubber plants has continued to maintain a low level. As of July 26, the construction of domestic butadiene rubber plants is around 5.60%.

Demand side: Downstream tire production has slightly decreased, and demand is supported by weak demand in the butadiene rubber market. Downstream inquiries are resistant to high priced sources of goods. As of July 24th, 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 5.4%.

Market forecast: From a fundamental perspective, analysts from Shengyi Society believe that the high price of raw material butadiene will fall, and there is still support for a slight decrease in the cost center of butadiene rubber; Shunding rubber production remains at a low level and the market supply is tight; Recently, downstream tire companies have seen a slight decrease in production and are cautious about purchasing Shunding rubber. Overall, the Shunding rubber market is expected to consolidate weakly in the short term.