The butadiene rubber market saw a significant decline in March. According to data monitoring from Business Society, as of March 31, the price of butadiene rubber was 11220 yuan/ton, a decrease of 7.27% from the beginning of the month at 12100 yuan/ton. The price of raw material butadiene has significantly decreased, and the cost support for cis-1,4-polybutadiene rubber has weakened; In March, the construction of downstream tire factories fluctuated slightly, and the new demand for cis-1,4-polybutadiene rubber was weak. In the late March, the market turnover was light, the ex factory price of cis-1,4-polybutadiene rubber dropped significantly, and the market price of cis-1,4-polybutadiene rubber fell.

Supply side: The supply side of butadiene rubber fluctuated slightly in March. The supply of butadiene rubber increased slightly in the later stage.

Cost side: In March, the price of butadiene decreased, while the cost side of cis-1,4-polybutadiene rubber significantly decreased. According to the monitoring of Business Society, as of March 31, the price of butadiene was 8551 yuan/ton, a decrease of 11.96% from 9712 yuan/ton at the beginning of the month.

The natural rubber market fell in March, which had a bearish impact on butadiene rubber. As of March 31st, the price was at 11525 yuan/ton, a decrease of 4.11% from 12020 yuan/ton at the beginning of the month.

Demand side: The operating rate of downstream tire enterprises in March has temporarily remained around 70%, and there has been no significant increase in demand for cis-1,4-polybutadiene rubber. In addition, the low price of natural rubber makes cis-1,4-polybutadiene rubber even less advantageous. The demand side for cis-1,4-polybutadiene rubber in March was mainly weak.

Future Market Forecast: Business Society analysts believe that downstream construction has not significantly improved the demand for butadiene rubber. In the short term, the demand for butadiene rubber is weak, and raw material prices are low. The cost of butadiene rubber is declining. However, multiple oil producing countries are jointly reducing production, and international crude oil prices may be operating at high levels. The cost of butadiene rubber may be further supported. Overall, it is expected that butadiene rubber will consolidate weakly in the short term, and there is still an upward opportunity in the medium to long term.