Price trend
Recently, the domestic butadiene market has declined, and the price has dropped again and again. The closing price of external disks has dropped significantly, and the ex-factory quotations of major manufacturers have been continuously lowered. According to the sample data monitored by SunSirs, between April 1st and April 7th, the domestic butadiene market price dropped from 7,415 RMB/ton to 6,718 RMB/ton. The price dropped by 9.39% during the period and the price dropped by 20.14% month-on-month. The price was still up 62.73% year-on-year.
Analysis review
The domestic butadiene market was dominated by a slight consolidation, and the market supply was still relatively abundant. Some suppliers continued to ship at falling prices, and the market's focus dropped slightly. Although there were sporadic merchants who had inadvertently lowered their prices due to the high cost of holding positions, market trading was still weak due to the drag on the supply side.
In terms of enterprises, Sinopec’s sales companies offered butadiene at 7,900 RMB/ton from April 1 to 6,800 RMB/ton on April 7, a decrease of 1,100 RMB/ton. Fushun Petrochemical and Liaotong Chemical were bidding for export, and the prices were low. At the same time, they increased the social inventory of butadiene. The downstream demand was relatively stable. The contradiction between oversupply and demand was obvious for a while, and traders mostly traded at low prices.
External disk: As of April 6, Asian butadiene prices fell: FOB Korea closed at 995-1,005 US dollars/ton, down 30 US dollars/ton; CFR China closed at 1,035-1,045 US dollars/ton, down 30 US dollars/ton. European butadiene external disk prices were stable: FOB Rotterdam closed at 1,045-1,055 US dollars/ton; FD Northwest Europe closed at 795-805 euros/ton.
Market outlook
Looking at the market outlook, on the one hand, the supply side of East China and domestic suppliers is relatively abundant, on the other hand, the downstream raw material inventory is relatively abundant, the market’s ability to accept high-priced sources is limited. SunSirs butadiene analysts predict that the domestic butadiene market will be downturn in the short term.
