Asian butadiene market plunged, downstream buyers side-line

The Asian butadiene market has been falling throughout the holiday week in China, with FOB Korea cargoes loosing approximate 24 per cent in value or $370/ton compared to a week earlier, reaching $1180/ton on 6 September 2017.

Industry participant reported that the general supply for butadiene remains relatively tight, however, weaker buying interest from the downstream markets, including ABS and SBR overshadowed other factors. “Chinese players just return from the long National day holiday and it is still uncertain if demand would pick up immediately. At the moment, discussion for the coming month is still disappointed,” an industry participant said.

In the downstream ABS market, players are waiting for producers to make adjustment following the nosedive in butadiene costs and prices above the $2000/ton mark are gradually disappearing. “Buyers are technically on the side-line at the moment. We are unable to close any deals over the past week,” an international trader said.

The SBR sector has been softening too, leading buyers in this sector to embrace extra cautious stance. These might put more pressure on the butadiene market though it is the year-end festive season.