The butadiene rubber market experienced a significant decline in February. According to the Commodity Market Analysis System of Shengyi Society, as of February 27th, the market price of butadiene rubber in East China was 14030 yuan/ton, a decrease of 6.47% from 15000 yuan/ton at the beginning of February. The price of raw material butadiene has dropped significantly, and the cost center of butadiene rubber 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 butadiene rubber. As of February 27th, the mainstream price in East China is 13850-14250 yuan/ton.

Since February, the price of butadiene has significantly decreased, and the cost center of butadiene rubber has shifted downwards. According to the Commodity Market Analysis System of Shengyi Society, as of February 27th, the price of butadiene was 11087 yuan/ton, a decrease of 12.44% from 12662 yuan/ton at the beginning of February.

In February, the domestic production of butadiene rubber plants remained at around 6.20%, and the supply pressure slightly decreased compared to January.

Demand side: Downstream tire production will increase after the holiday, mainly supporting the demand for butadiene rubber market. As of February 20th, the operating load of semi steel tires in domestic tire enterprises is around 8.0%; The construction of all steel tires by tire enterprises in Shandong region has slightly increased to around 6.7% of the load.

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