According to the monitoring by the Business News Agency, the butadiene market first rose and then fell, and overall declined. From March 10th to 17th, the domestic butadiene market price fell from 9166 yuan/ton to 9041 yuan/ton, with a 1.36% drop in price during the cycle. The price fell 8.39% month on month and 10.59% year on year.

At the beginning of the week, Sinopec’s external quotation was raised, which once boosted the mentality of businesses. However, with the production of Dongming Petrochemical Unit and the restart of Zhejiang Petrochemical Unit 2, the market supply has increased significantly, while the main downstream Chuanhua cis-1,4-polybutadiene rubber unit unexpectedly shut down, resulting in a significant contradiction between supply and demand, and the butadiene market has turned downward.

In terms of cost and crude oil, international crude oil has plummeted continuously, with Brent falling by more than 10%. The impact of pessimism has spread, and the market is mostly on the sidelines. In terms of naphtha, the Shandong naphtha market rose and fell, causing a downward trend. Negative impact on butadiene cost.

On the supply side, the listed price of butadiene in Sinopec’s sales companies rose first and then fell, with a cumulative decrease of 100 yuan/ton and a execution of 9100 yuan/ton. Fushun Petrochemical’s 160000 t/a butadiene extraction unit has been operating steadily, with 900 tons of supply for secondary bidding and export, with a bidding base price of 8000 yuan/ton; The transaction price is at 8220 yuan/ton. The butadiene supply side showed a negative impact.

On the demand side, the main downstream of butadiene showed a downward trend, with the largest decline in nitrile rubber being 400 yuan/ton. The demand for butadiene is weak.

In terms of external market: On March 16th, the closing price of butadiene in Asia fell: FOB South Korea quoted 1145-1155 US dollars per ton, down 30 US dollars per ton; China CFR reported a decrease of $20 per ton from $1175-1185 per ton. The external price of butadiene in Europe remained stable: FOB Rotterdam closed at 845-855 USD/ton; FD Northwest Europe closed at 875-885 euros per ton.

Region/ Country/ Closing Price/ Up and down

Asia/ FOB Korea./ US $1145-1155/ton/ -30 yuan/ton

Asia/ CFR China/ 1175-1185 USD/ton/ -$20/ton

Europe and the United States/ FOB Rotterdam/ 845-855 USD/ton/ $0/ton

Europe/ FD Northwest Europe/ 875-885 euros/ton/ 0 Euro/ton

In the future, it is predicted that the device will be restarted and new capacity will be put into production, while the downstream product market will decline. Butadiene analysts from the Business Agency predict that the domestic butadiene market will continue to decline in the short term.