The factory price of cis-butadiene rubber rises again

The factory price of butadiene rubber has once again increased, with market offers remaining high and consolidating at elevated levels. Participants are tentatively offering higher prices to test the market, but end-users are generally less willing to purchase high-priced resources. Additionally, after the prices of butadiene rubber gradually aligned with Tianjiao prices, downstream buyers have become more cautious. As the supply of butadiene is expected to tighten and the profits of downstream synthetic rubbers and other products become more inverted, butadiene rubber plants are expected to reduce production and undergo maintenance, leading to a significant decline in capacity utilization. Attention is focused on the supply side of butadiene rubber and the transmission signals along the butadiene industry chain. Due to cost pressures, Longzhong Information forecasts that the domestic butadiene rubber market will remain at high levels during this cycle. Traders may be more inclined to test prices above the range, while demand is unlikely to increase significantly given the narrowing profit margins and the difficulty in following upstream price increases, making it harder for butadiene rubber transactions to expand. (Longzhong Information)