Recently, the domestic butadiene market has fallen. As of February 18, the price of butadiene was 9606 yuan/ton, according to business association monitoring.
II. Analysis of Influencing Factors
Products: The domestic butadiene market is narrowly declining, the market supply side is still abundant, and the downstream demand is limited, dragging the butadiene industry mentality. With the gradual recovery of demand in the later period, there is some support for butadiene market, but due to the abundant inventory of suppliers, the market lacks obvious good news support. There is a strong wait-and-see atmosphere in the butadiene market in Shandong Province. The downstream manufacturers digest their inventories mainly. The market supply side is still abundant, the market is limited, and the offer is kept in order. Eastern China butadiene market atmosphere is general, Sinopec’s lower supply price has limited impact on the market, downstream demand has not improved, market turnover is light, and the offer is maintained. Asian closing price of butadiene, FOB Korea average offer $1110-1118 per ton; CFR China average offer $1095-1103 per ton.
Industry chain: styrene-butadiene rubber: due to the poor natural rubber, and the price of butadiene in the inner plate has also been reduced, the market volatility of styrene-butadiene rubber is weak, prices in some areas are slightly loose, the transaction is small and the actual transaction price has been heard to hang upside down. Cis-butadiene rubber: The domestic market for cis-butadiene rubber is weak and volatile. Some vendors’offer price is slightly inverted, and there is still a lack of inquiries and purchases from buyers in the venue. Spot turnover is scarce. SBS: Oil and dry rubber ducts in domestic SBS market are narrowed, and the atmosphere is light.
3. Future Market Forecast
On the positive side, demand is expected to recover gradually; on the negative side, external prices are weak and supply is abundant. With the gradual recovery of demand in the later period, there is some support for butadiene market. However, due to the abundant supply stocks and the lack of obvious good news support in the market, butadiene analysts of business associations expect that the domestic butadiene market will continue to be weak in the short term, focusing on the latest price policy of manufacturers.