China Petroleum and Chemical Corp., or Sinopec, cut its ex-works butadiene offers in eastern China to Yuan 11,000/mt, or about $1,335/mt on an import parity basis, down Yuan 1,500/mt or 12% from Monday, market sources said.
The last time the state-owned company cut its offers was on March 29, when they were reduced by Yuan 1,500/mt to Yuan 12,500/mt.
The main reason for the cut was a supply glut amid weak domestic demand.
Several synthetic rubber plants in China have been cutting production due to tighter environmental laws.
Sinopec Beijing Yanshan Petrochemical cut the operating rate of its 150,000 mt/year polybutadiene rubber plant from 100% to 50% of capacity, a market source said.
On Friday, CFR China butadiene was assessed at a five-month low of $1,400/mt, down $400/mt week on week.
