Asian's butadiene market plunged, further reduction expected
Asian's butadiene market plunged, further reduction expected

The Asian’s butadiene market has been escalated to multi-year high levels during mid-October 2016 after Shell Singapore unexpectedly declared force majeure at its cracker, tightening regional supply.
In fact, from 27 September 2016 – when Shell’s cracker encountered technical issues to 21 October 2016, butadiene price based on FOB Korea term surged $445/ton to reach $1600/ton - the level market has not seen since November 2013.
However, the market started to loose steam right after that, shredding $255/ton from the recent high at the time this report is published. Industry participants are expecting further reduction in the near term as regional supply is easing with Shell lifted force majeure on its petrochemical output on 7 November. Demand from downstream market is reported to be subdued, including ABS.
Southeast Asian ABS offers have reached $1620/ton CIF Vietnam, LC AS term this week with a trader informed, “Customers are simply unable to accept such hike and such strong reluctant could prevent prices from any further drastic increment.”