The bottom of the butadiene market rebounded waiting for good

Drying equipment

"This year's butadiene market is really unfavorable. It fell from 300 to 500 yuan per day last week (t price, the same below). Within a week, the price has dropped to more than 2,000 yuan, and the market has been intensifying." According to industry estimates The current bearish pressure will form pressure. If there is no special interest, the butadiene market will continue to be in a sluggish situation, and it is hopeless for the short-term to come out of the low point.

The Asian market sings a bad one. In mid-February, the Asian butadiene market price was a one-day drop. It was almost “behind this year’s peak”. The main reasons for this situation are the drop in the cost of materials supply and the downturn in downstream demand. Butadiene manufacturers do not want to sell at a fixed price, and floating prices are more popular because this means that they may usher in a market turnaround. Some synthetic rubber stocks in the downstream are well stocked and are sufficient until the end of June. The above factors further weakened the upward momentum of the domestic butadiene market. As the market has not improved, it is reported that Taiwan's CPC Group has delayed the restart of its Kaohsiung butadiene plant to early June.

The cost of support fell to the freezing point. The latest data shows that US crude oil inventories rose by 3.65 million barrels, and oil demand remains weak. Although the number of initial jobless claims in the United States decreased, and the U.S. dollar exchange rate fell, U.S. light crude oil futures rebounded slightly. However, the market outlook is not optimistic. It is difficult for the butadiene market to form a support on the cost side.

Domestic butadiene market is also hot and hot. Downstream demand is hopeless, becoming the biggest resistance to the butadiene market rebound. The reduction in domestic reserve ratio did not inject as good a market as expected, and the market fluctuated.

The butadiene rubber market was pessimistic. Last week, domestic petrochemical companies lowered the price by another 1,000 yuan to 23,500 to 23,600 yuan. Although there is an inquiry after the price reduction, but more preference for low-cost sources, and businesses have no intention of shipping losses, maintaining on-demand procurement, the overall turnover stalemate. According to the Guangrao Tire Exhibition, downstream and downstream tires companies are subject to pressure, the factory inventory is high, most small-scale enterprises started to halve, and some full-steel tire projects started to fall to about 50%. The demand for synthetic rubber in the short-term tire market is difficult to open.

Styrene butadiene rubber prices continue to explore Since May, SBR has fallen 3,000 yuan, a drop of 13.1%. After the domestic petrochemical enterprises lowered the price of styrene-butadiene rubber, the spot market did not appear to be expected to buy at the bottom. Due to persistent bearish sentiment, upside down offers were also rare, because merchants had low spot stocks and had no intention of continuing losses.

The ABS market conditions are weak and go down Market makers have a significant lack of confidence in the market outlook, risk aversion is heating up, and commodity market prices are suppressed. Due to the compression of profit margins in the downstream, the demand is not satisfactory, the intention to accept goods is indifferent, and purchases into the market are limited, and the overall trading atmosphere of the market tends to be weak. Although the state's new round of subsidy policies for the home appliance industry has been introduced, its limitations have increased over the previous period, mostly targeting high-end, energy-saving products, and the variety is less than the previous period. Although it has a certain boosting effect on the home appliance industry, it actually supports Limited, no significant improvement in ABS demand.

The international situation is complicated and confusing. On May 6th, France changed hands, and on May 7th, the Greek general election was unveiled. Although the G-8 stressed that Greece remains in the euro zone, there are still many uncertainties regarding Greece’s re-election and whether it can stay in the euro zone, raising concerns for the industry. In the domestic market, affected by the regulation of the housing market, the slowdown in economic growth this year is a foregone conclusion.

The butadiene market is notoriously weak. Under the above-mentioned negative factors, there is still room to fall in the short-term.

ASTM F1554 Threaded Rods

We are China manufacturer of high quality grade 36,grade 55, grade 105 Threaded Rods and threaded bars in astm f1554 standard. Our advantages and more services of threaded steel rods includes:

1) Wide range of diameters from 1/2" - 4"

2) Customized Length from 100mm to 12000mm

3) Good threads at 60 degree

4) Good straightness: 1mm/m max

5) Even hardness on whole bars

5) Proper mechanical properties

7) Full sets of testing equipment: Surface, Dimenstion. Mechanical properties testing

8) Fast delivery time

Grade 36 Threaded Rod,Grade 36 Steel Bar,Grade 55 Threaded Rod,Astm F1554 Grade 105 steel bar,Astm F1554 Grade 105 Threaded Rods

SHANDONG LE REN SPECIAL STEEL CO., LTD. , https://www.sdbrightsteelbar.com