According to the Commodity Market Analysis System of Shengyi Society, the domestic butadiene market fluctuated downward this week. From May 23rd to 30th, the domestic butadiene market price fell from 10733.33 yuan/ton to 9800 yuan/ton, with a price drop of 8.7% during the cycle. The overall weakness of the domestic butadiene market and the downstream synthetic rubber futures market in this cycle have dragged down the atmosphere of the spot market. Although there were some equipment repairs this week, the supply has slightly declined. However, the pressure on the demand side has had a greater impact on the market, and the trading situation in the spot market is not good, ultimately dragging down the overall market price.

Cost wise: In May, international oil prices first fell and then rose, with an overall upward trend. As of the 26th, the US WTI crude oil market was closed, and the settlement price of the main Brent crude oil futures contract was $64.74 per barrel. On the one hand, the Middle East region has once again become tense, and this news is positive for the international oil market, with crude oil prices rising; On the other hand, the United States has increased its oil restrictions on a certain country, and the easing of tariffs between China and the United States has led to an increase in international oil prices.
Supply side: The listed price of butadiene for various sales companies of Sinopec is 9800 yuan/ton, which will be lowered by 700 yuan/ton this week.
Demand side: According to the Commodity Market Analysis System of Shengyi Society, the recent (5.20-5.27) styrene butadiene rubber market has slightly weakened. According to the Commodity Market Analysis System of Shengyi Society, as of May 27th, the price of styrene butadiene rubber in the East China market was 12366 yuan/ton, a decrease of 3.51% from 12816 yuan/ton on the 20th. The prices of raw materials butadiene and styrene have declined, and the cost support for styrene butadiene rubber has significantly weakened. Downstream tire production is stable, providing strong support for the demand for styrene butadiene rubber; The start of production of styrene butadiene rubber has risen, and the supply pressure has slightly increased. As of the 27th, the mainstream market price of 1502 styrene butadiene rubber in Fushun, Jihua, Yangzi, and Qilu in East China is around 12250-12500 yuan/ton.
Market forecast: Some domestic butadiene units are still under maintenance in the near future, and there is still some support in the supply side. However, downstream terminal procurement demand has always been weak, and with the continuous weakening of the synthetic rubber futures market, downstream entry enthusiasm is significantly low, lacking demand support. Under the atmosphere of supply and demand game, it is expected that the butadiene market will maintain a range oscillation trend in the short term.