Butadiene: the market fluctuates violently

In June, the domestic butadiene market price rose sharply and fell violently. At the beginning of the month, the supply price of Sinopec and the external market price continued to rise. In addition, some suppliers in the venue bid for a substantial increase in the price of goods, which boosted the mentality of merchants. The butadiene market rose rapidly, reaching a new high in the year. However, the rapid rise in butadiene prices has led to continued pressure on downstream profits, a gradual weakening of the demand side, and the plant has been restarted one after another, adding some suppliers' sources of goods for export to supplement the spot supply. The market supply and demand fundamentals are bad guidance. So far, the market has been weakening, and downstream inquiries have become more cautious. In the middle and late part of the month, the sudden accident of Shanghai Petrochemical Unit caused the shutdown of upstream and downstream units. The news boosted the market mentality, and the merchants' expectations were too strong to continue to push up the offer, and the market stopped falling and rebounded. However, the butadiene market fell again due to the volatility and weakness of the crude oil market, the weak follow-up of downstream demand, and the flow of some bidding sources, combined with multiple negative factors. Near the end of the month, some downstream bargain hunting and position filling have formed a certain support for the market, but the market is still dominated by negative factors, and it is still necessary to pay careful attention to the actual transaction. On the whole, negative and positive factors alternated in the market, and the market fluctuated violently in June.

In July, after the butadiene market fell to a relatively low level in the short term, it stimulated some businesses to buy positions at low prices, and the phased demand remained. However, with the restart of some units and the commissioning of new units, the on-site spot supply is expected to increase. However, the downstream synthetic rubber profits continued to be under pressure, and there was no significant boost in demand, and the overall supply and demand support of the market was weak. It is expected that the butadiene market will continue the trend of shock consolidation next month.