This cycle, the domestic butadiene market first rose and then fell, with an overall downward trend. At the beginning of this week, the market continued the trend of last week with a slight increase, but with lower downstream purchasing intentions and a lack of demand support, the butadiene market began to decline. Entering the later part of the week, with the weak trend of downstream synthetic rubber futures market and equipment maintenance, the market expects weak downstream demand and a lack of downstream support, and the butadiene market began to decline in the middle of the week.

On the cost side: The crude oil market price has risen significantly. As of the 11th, the settlement price of the July WTI crude oil futures contract in the United States was $68.15 per barrel, and the settlement price of the August Brent crude oil futures contract was $69.77 per barrel. The crude oil market has seen a significant increase, mainly due to the escalating tensions in the Middle East region, as well as the good progress made in the China US trade negotiations and the unexpected decline in US crude oil inventories, which have supported the upward trend of the international oil market.
Supply side: The listed price of butadiene for various sales companies of Sinopec is 9200 yuan/ton, which will be lowered by 600 yuan/ton this week.
On the demand side: According to the commodity market analysis system of Shengyi Society, the recent (6.1~6.11) butadiene rubber market has fluctuated and weakened. As of June 11th, the butadiene rubber market price in East China was 11650 yuan/ton, a decrease of 2.18% from 11910 yuan/ton on the 1st. The price of raw material butadiene continues to decline, and the cost center of butadiene rubber shifts downwards; Shunding rubber production slightly decreased, easing supply pressure; Downstream tire production slightly decreased, providing support for the demand for butadiene rubber. As of June 11th, the mainstream prices in Qilu, Daqing, Sichuan, and Yangtze Shunding in East China were reported at 11550-11800 yuan/ton.
Market forecast: In the near future, domestic butadiene plants will restart, domestic production will increase, and the arrival of port cargo in East China will also be good. Overall, the market supply is relatively loose. The downstream demand side is unlikely to show significant improvement in the near future, and the decline in the futures market is dragging down market sentiment. The overall fundamentals are weak, and it is expected that the butadiene market will operate weakly in the short term.