The domestic butadiene market continued to decline in January. According to the sample data monitored by the business community, the domestic butadiene market price at the beginning of the month was 7751 yuan / ton, and that at the end of the month was 6056 yuan / ton, with a decrease of 21.86% within the month and a year-on-year decrease of 24.82%.

In January, the domestic butadiene market continued to decline. With the release of Wanhua, Wuhan and srbang production, the domestic supply side increased significantly. At the same time, under the expectation of South Korea’s LG plant restart, the market expectation was weak. During the month, Yangzi Petrochemical’s styrene butadiene and cis-1,4-polybutadiene rubber plants were shut down due to accidents, resulting in an increase in butadiene surplus, which was dragged down by the imbalance between supply and demand, and the internal and external markets continued to decline. The supply in East China and the external market is abundant. With the continuous decline of the external transaction price and the wide reduction of Sinopec’s supply price, the domestic butadiene Market Center continues to decline. In the middle and late period, some of the lower reaches of the North stock before the festival, there is a certain support for the market, and the goods holders also have a more obvious intention to support the price, the market fell into a stalemate consolidation situation.

In terms of enterprises, the domestic butadiene market continued to decline in January. With the release of Wanhua, Wuhan and srbang production, the domestic supply side increased significantly. At the same time, under the expectation of South Korea’s LG plant restart, the merchants’ market expectation was weak. During the month, Yangzi Petrochemical’s styrene butadiene and cis-1,4-polybutadiene rubber plants were shut down due to accidents, resulting in an increase in butadiene surplus, which was dragged down by the imbalance between supply and demand, and the internal and external markets continued to decline. The supply in East China and the external market is abundant. With the continuous decline of the external transaction price and the wide reduction of Sinopec’s supply price, the domestic butadiene Market Center continues to decline. In the middle and late period, some of the lower reaches of the North stock before the festival, there is a certain support for the market, and the goods holders also have a more obvious intention to support the price, the market fell into a stalemate consolidation situation.

External price: as of February 1, the external price of butadiene in Asia was stable: FOB Korea closed at US $735-745 / T; CFR China closed at US $775-785 / T. The external price of butadiene in Europe was stable: FOB Rotterdam closed at US $545-555 / T; FD closed at Euro 595-605 / T in northwest Europe.

The recent performance of downstream profits is fair, and there is a certain support for butadiene market in the face of demand. February coincides with the Spring Festival holiday, affecting the domestic butadiene market trading atmosphere performance is cold. At the beginning of this month, most mainstream manufacturers have sources of goods for export. It is expected that the external quotation of major manufacturers will continue to decline. However, under the guidance of demand support and post Festival news, the market decline is limited, and the overall performance is slightly consolidated. Business community butadiene analysts expect short-term domestic butadiene market consolidation.