According to the Commodity Market Analysis System of Shengyi Society, from March 3rd to March 10th, the domestic butadiene market price decreased from 11462.5 yuan/ton to 11200 yuan/ton, with a price reduction of 2.29% during the period. This week, the butadiene market continued to show a weak trend, and the overall supply in the spot market was relatively loose. The spot market was under pressure, and although the holders had a bullish attitude, the market atmosphere was difficult to support. The demand side synthetic rubber market trend remained weak within the week, and under the pattern of weak supply and demand, the butadiene market continued to delay its weak operation this week. As of March 10th, the self pickup price for containers in East China is around 10600-10700 yuan/ton.

Cost wise: The crude oil price trend has been weak during this period. As of March 7th, the settlement price of the main contract for WTI crude oil futures in the United States was $67.04 per barrel. The settlement price of the main Brent crude oil futures contract is $70.36 per barrel. The downward trend in crude oil prices during this cycle is due to the easing of the geopolitical situation between Russia and Ukraine. The United States is considering easing sanctions on Russia, which has reduced potential supply risks. In addition, oil producing countries plan to increase production slightly from April, which has affected the international crude oil market and led to a decline; On the other hand, the imposition of tariffs by the United States has intensified market concerns and may drag down global economic and demand expectations, leading to a decline in the crude oil market.

Demand side: The domestic synthetic rubber market is weak and slightly declining in this cycle. According to the commodity market analysis system of Shengyi Society, the mainstream prices of butadiene rubber in Sichuan, Dushanzi, and Lande are currently at 13650-13800 yuan/ton. During this cycle, the futures price of butadiene rubber fluctuated and fell, and the supply price of butadiene rubber decreased, dragging down the market atmosphere. The overall spot market price was weak.

Market forecast: The recent trend of the crude oil market is still weak in the future, and there is insufficient support for the market. In terms of supply, the overall spot market supply has been relatively loose recently, and the market’s future supply expectations are weak. The demand side synthetic rubber market trend is weak, and demand expectations are weak. Overall, under the weak supply-demand pattern in the butadiene market, it is expected that the short-term market will continue to show a weak trend.