In December, the domestic butadiene market dropped sharply. According to the sample data monitored by the business community, the domestic butadiene market price was 92009926 yuan / ton at the beginning of the month and 7751 yuan / ton at the end of the month, with a decrease of 21.91% within the month and a year-on-year decrease of 6.07%.

The domestic butadiene market fell rapidly. Although some of the Northeast suppliers were shipped for export, the restart of Lotte plant led to weak external market. The start-up of Shandong Huayu and Wanhua plants and the export of Fushun Petrochemical led to weak market supply. Affected by the environmental protection and production restriction, the downstream construction was poor, the demand performance was low, and the contradiction between supply and demand was intensified, which dragged the market down continuously. At the end of the month, some downstream positions were filled before the festival, which once led the market to rise, but the supply was abundant and the demand was difficult to sustain, and the market returned to a weak position after a short-term shock.

In terms of enterprises, Sinopec’s East China butadiene supply price has increased by 900 yuan / ton month on month, with the implementation of 10100 yuan / ton since November 23; Sinopec’s East China butadiene supply price has decreased by 2100 yuan / ton month on month, with the implementation of 8000 yuan / ton since December 25; and sipang’s 100000 ton / year oxidative dehydrogenation unit Fushun Petrochemical’s 160000 T / a extraction unit was in stable operation, with an increase in export sales in the second half of the month, and the total volume of on-line export sales in the month was 2460 tons; Wuhan Petrochemical’s 130000 T / a extraction unit was shut down for maintenance on October 17 and restarted on December 22; Shandong Huayu’s 60000 T / a extraction unit was shut down in January and restarted in early December for its own use Mainly.

Enterprise, price (yuan / ton), plant dynamic

Zhenhai Refining & Chemical Co., Ltd. operates normally with an annual capacity of 1.68 million tons

Normal operation of 80.12 million T / a plant in Shanghai Petrochemical Company

Yangzi Petrochemical’s 80.12 million T / a unit operates normally

The 80.2 million T / a plant of Sinopec is in normal operation and mainly supplied by each other

Maoming Petrochemical’s 80.15 million T / a unit is in normal operation, mainly for mutual supply and a small amount for export

Guangzhou Petrochemical’s 80.03 million T / a unit is in normal operation, mainly for mutual supply and a small amount for export

Wuhan ethylene 80.13 million T / a plant restart on December 22

External price: as of December 30, the external price of butadiene in Asia was stable: FOB Korea closed at US $1105-1115 / T; CFR China closed at US $1055-1065 / T. The external price of butadiene in Europe was stable: FOB Rotterdam closed at 920-930 USD / ton; FD closed at 765-775 EUR / ton in northwest Europe.

With the restart of Wuhan Petrochemical Company and Jiangsu sipang plant and the gradual release of Yantai Wanhua production, the supply side of domestic butadiene market will be abundant next month, and it is expected that the supply pressure will be increased after part of the source of export is transferred to domestic sales. In terms of downstream demand, affected by environmental protection and other factors, the construction of latex and tire industries in the downstream of northern China has declined, and the supply and demand fundamentals have not been significantly improved. Business community butadiene analysts expect that the domestic butadiene market is mainly in the doldrums in the short term.