New leader in chemical industry? Butadiene quotes rose nearly 10%

According to industry website monitoring, Asian butadiene prices rose last weekend: FOB Korea closed at US$605-615/ton, an increase of US$45/ton; CFR China closed at US$595-605/ton, an increase of US$15/ton. European butadiene prices rose: FOB Rotterdam closed at 445-455 US dollars/ton, up 50 US dollars/ton; FD Northwest Europe closed at 365-375 euros/ton, up 25 euros/ton.

Institutional analysts believe that the global increase in butadiene prices is mainly due to the increase in naphtha prices and the tight spot supply of butadiene in Asia. The restart of the 180,000-ton/year butadiene unit at the Johor refinery that Malaysia Prechem shut down due to the fire was postponed from September to early 2021. At the same time, Brazil exported part of the supply to the United States and Mexico, which together led to butadiene in Asia Changes in the spot supply environment.

In addition, South Korea’s SK plans to overhaul its 110,000-ton/year butadiene unit in Ulsan, and Taiwan’s Formosa Plastics plans to overhaul its 180,000-ton/year butadiene unit in Mailiao, which gives the market more confidence.

Manufacturers in the butadiene market have increased their supply prices, and it is difficult to find low-price sources in the market. The ABS market, which is another downstream of butadiene, continues to rise. Traders are actively pushing up, and market prices continue to rise.

In terms of related companies, according to the petrochemical sector of the stock selection treasure theme library,

Chengzhi shares: The company's chemical products accounting for 87% in 2019 include: industrial gases (hydrogen, carbon monoxide, synthesis gas), ethylene, propylene, butadiene, isooctyl alcohol and other popular chemical liquid products. In addition, the vehicle exhaust remote sensing detection equipment of the company's Chengzhi Baolong is an important tool for screening high-emission and high-polluting vehicles on urban roads, and an important means of environmental monitoring. The company's stock price had previously gone out of the 10-day 8-board market.

Huajin: The company is the only listed company in the petrochemical sector under China North Industries Group. Its main products are oil products, polyolefins, chemical fertilizers, road asphalt, etc. The company now has a butadiene production capacity of 100,000 tons per year, and will fully enjoy the butadiene market dividend.