China Petroleum and Chemical Corp., or Sinopec, raised its ex-works butadiene offers in eastern China to Yuan 23,000/mt, or about $2,794/mt on an import parity basis, up Yuan 1,500/mt or 7%, market sources said Tuesday.
On January 12, the state-owned company raised prices to Yuan 21,500/mt, up Yuan 500/mt.
Its prices in Northern China were also raised by Yuan 1,500/mt to Yuan 23,000/mt.
Since December 2016, tight supply and strong demand for butadiene have boosted spot prices in Asia.
On Monday, the CFR China butadiene marker was assessed at $2,950/mt, up 84.4% from $1,600/mt CFR China on December 1, 2016, S&P Global Platts data showed.
Sinopec's price increase comes after another local butadiene producer, Panjin Ethylene, raised its ex-works price Monday to Yuan 23,010/mt, up Yuan 1,200/mt.
Higher natural rubber prices in Asia have also boosted market sentiment.
On the Tokyo Commodity Exchange Monday, the June rubber futures contract closed at Yen 305/kg ($2.67), up Yen 11.5/kg, its highest in four years.
Similarly, on the Shanghai futures exchange Monday, the May delivery contract finished at Yuan 21,515/mt ($3,119), up Yuan 1,135/mt.
A butadiene producer said delivered prices in East China were higher than ex-works prices at Yuan 24,400/mt.
