Downstream Fluctuations: Butadiene Prices Oscillate Within a Range

September 05, News

According to the commodity market analysis system, the Chinese butadiene market mainly fluctuated within a range during this period. From August 29 to September 5, 2025, the price of butadiene increased from 9,350 CNY/ton to 9,400 CNY/ton, a rise of 0.53%. This week, there was limited change in supply and demand. Influenced by the fluctuations in the downstream synthetic rubber futures market, the butadiene market first fell, then rose, and finally dropped again, maintaining an overall range-bound trend. As of September 5, the delivered price in the Shandong market was between 9,600 and 9,700 CNY/ton.

Cost Perspective: This week, crude oil market prices remained largely volatile at lower levels. As of the 4th, the settlement price for the October WTI crude oil futures contract in the U.S. was $63.48 per barrel, while the November Brent crude oil futures settled at $66.99 per barrel. The crude oil market is being influenced by a mix of bullish and bearish factors. On one hand, geopolitical issues continue to play a significant role, with the Russia-Ukraine conflict keeping the market relatively strong. On the other hand, Saudi Arabia may increase its oil production, U.S. crude inventories are rising, and the peak driving season in the U.S. has already ended. Additionally, concerns about the global economic outlook and weakening oil demand are putting downward pressure on crude oil prices.

Supply side: Sinopec's various sales companies are implementing a listed price of 9,500 CNY/ton for butadiene.

The 160,000 tons/year butadiene plant of Fushun Petrochemical in China is operating normally. It will be shut down for maintenance starting from August 14, with no plans for external sales, and is expected to restart in October.

Shenghong Refining's 200,000 tons/year butadiene unit is operating normally, with a price of 9,450 CNY/ton.

Satellite Chemical's 90,000 tons/year butadiene plant is operating normally, with a price of 9,350 CNY/ton.

Demand Side: According to the commodity market analysis system, as of September 5th, the butadiene rubber market in East China remained firm. Downstream buyers showed strong inquiries for their essential needs, and the market transaction atmosphere was good, with merchants maintaining firm offers. Currently, the mainstream prices for butadiene from Daqing, Yangzi, and Qilu range from 121,500 to 124,500 CNY/ton; some private brands are priced around 119,000 to 121,500 CNY/ton.

Market Forecast: Recently, China's butadiene production facilities have maintained relatively stable operations with minimal overall changes. Downstream enterprises are operating at healthy capacity levels, providing some solid support to the market fundamentals. Amidst a cautious balance between supply and demand, the butadiene market is expected to continue its narrow trading range in the near term.