What will Happen to Polybutadiene Prices?

Natural rubber (NR) prices at the Shanghai Futures Exchange (SHFE) greatly went up, mainly boosted by capital and sentiment sparked. Besides, news about the flood in India, leaf cast in Indonesia and rainstorm in Shandong, China also contributed to the price growth. By the noon on August 22, spot prices of NR surged by RMB 500-700/mt. Meanwhile, Sinopec increased the EXW price of butadiene by RMB 500/mt to RMB13,500/mt. The price upswing supported the polybutadiene market. However, the heavy rains badly influenced the operating rates at some tire plants. Some plants shut down the units because of ponding and damage to the power plants. Under the circumstances, what will happen to the polybutadiene market?

Polybutadiene prices were much higher than NR prices, and downstream demand was limited.

From January to July, the average price spread between PBR 9000 and compound rubber prices was over RMB 1,700/mt. In particular, in early August, the spread nearly approached RMB 4,000/mt. Although the substitution of NR for polybutadiene was limited, the long-term price spread dragged on the polybutadiene market. Sources said that some downstream plants reduced the consumption volume of polybutadiene at the extreme. Overall, the large price spread will continue in the short term, and downstream demand will hardly improve.

The price decrease of polybutadiene will be limited, strongly supported by the cost.

……

More detailed information, please click "Read more".