Butadiene Rubber Market Morning Briefing

Geopolitical tensions are escalating, causing significant fluctuations in major commodity prices such as crude oil. The price of butadiene raw material has surged sharply, and the ex-factory and market prices of cis-1,4-polybutadiene rubber have also risen substantially. Market participants are increasingly cautious, resulting in limited actual trading. The price of cis-1,4-polybutadiene rubber has inverted relative to raw material prices, with some facilities possibly expecting a reduction in production. However, current market and social inventories are relatively ample, and today’s rubber price center has room for a correction. Mainstream traders may maintain a wait-and-see approach, sell appropriately, and monitor the progress of the Strait of Hormuz shipping resumption amid Middle East tensions. (Longzhong Information)

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