Price trend

The domestic butadiene market fell weakly. According to the monitoring price of SunSirs, the domestic butadiene market price was 4,301 RMB/ton at the beginning of the week, and the domestic butadiene market price was 4,184 RMB/ton at the weekend, a decrease of 2.71% during the week. The price increased by 8.19% from the same period last month and decreased by 51.10% from the same period last year.

Analysis review   

Product: This week, the domestic butadiene market fell weakly, and under supply pressure, the market sentiment was negative. At the end of the month, the export volume of Northeast manufacturers increased, but the downstream raw material inventory remained high, and the poor transactions dragged the prices of suppliers down, exacerbating the market's short-term expectations and further dragging the market down. During the week, the market prices rose slightly, which supported the mentality of some merchants in East China. However, cargo shipments were abundant in Hong Kong. At the same time, under the pressure of the decline in the north, the downstream inquiry intention was low, and market trading was relatively stalemate.

In terms of enterprises, the supply price of Sinopec's butadiene in East China was stabilized at 4,500 RMB/ton; Liaotong Chemical's total supply of 338 tons was auctioned online. The base price was reduced by 400 RMB/ton to 3,510 RMB/ton, and the total turnover was 182 tons; Fushun Petrochemical restarted the export of its goods, the price was 3,500 RMB/ton, and the transaction volume was 450 tons; Dalian Hengli's 140,000-ton/year butadiene plant was gradually restored within the week, and the listed price was 3,780 RMB/ton; Inner Mongolia Jiutai's 70,000-ton/year butadiene plant was restarted and the quotation was 3,700 RMB/ton.

Industrial chain: Styrene-butadiene rubber: This week, the mainstream domestic styrene-butadiene rubber ex-factory price has not been adjusted, and the market offer range has fallen. Merchants have revolved around the supply price offer, while the enquiry has a low price range, and the trading atmosphere is deserted.

Butadiene rubber: This week, the factory prices of butadiene rubber were stable, and market offers continued to fall. The prices of upside-down prices were frequent. The trading atmosphere became even weaker, and firm transactions became increasingly stalemate. During the week, Maoming and Haupt's butadiene rubber plants continued to shut down, the Yangtze butadiene rubber plants were restarted one after another, other mainstream butadiene rubber plants were operating normally, coupled with the normal operation of Wanda after the restart, the spot market inventory is still relatively abundant.

Market outlook

On the positive side, external disk prices rose slightly, and the construction of major downstream industries was relatively high. On the negative side, with the increase in the export of spot goods in the north, the Shenhua Ning Coal Plant has no shortage of early restarts, and there is plenty of cargo to the port. As the fundamentals of supply and demand are difficult to be boosted, the butadiene analysts of the business community expect that the short-term domestic butadiene market will continue to decline, with mainly low-end finishing, the market price range refers to 3,500-3,800 RMB/ton

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