Butadiene in China have been consistently witnessing a rise in prices
Butadiene prices in China have been rising in a constantly increasing trend amid supply constraints, rising crude oil prices, and the anticipated maintenances of various units in China. Since January 2024, the prices reportedly witnessed a rise of about 17.08%.
The supply side recently remained tight, with limited available spot resources in the market and inventories falling to relatively low levels. Some producers were hesitant to sell, and downstream price increases once again boosted market sentiment. In the short term, market expectations remained strong.
Rumors circulated about upcoming maintenance plans for certain equipment, further boosting the spot market's mentality. Consequently, traders slightly raised their prices, and it was expected that the market would experience high volatility in the short term. The main factors supporting oil prices in the future included the peak summer demand season, with Asian summer demand and the North American driving season coming into play.
Additionally, Fujian United and Zhejiang Petrochemical Unit 2 had not been restarted, and Dushanzi Petrochemical was shut down for maintenance. This combination of favorable factors in the supply of butadiene led to strong market expectations for the future.
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Downstream synthetic rubber prices continued to rise, with the spot price of butadiene rubber increasing due to the surge in futures, high costs, and tight supply. With the continuous strengthening of raw material prices, downstream enterprises temporarily faced pressure on profits. Recent purchases had been cautious, yet favorable factors persisted overall.
