Weak Demand, Butadiene Market Continues to Decline

September 28, News

According to the commodity market analysis system, the Chinese butadiene market has been fluctuating downward in this cycle. From September 19 to September 26, 2025, butadiene prices decreased from 9,250 CNY/ton to 9,023 CNY/ton, a drop of 2.45%. This week, the overall performance of the Chinese butadiene market was weak. The demand side performed poorly, and the downstream synthetic rubber market showed a weak trend, with low enthusiasm for entering the market and weak purchasing intentions. The actual market transactions were not good, lacking demand support, leading to a generally weak operation of the butadiene market. As of September 26, the delivered price in the Shandong market was between 9,050-9,150 CNY/ton, a decrease of about 200 CNY/ton compared to the same period last week.

Cost Perspective: According to the commodity market analysis system, as of September 26, the settlement price for the November WTI crude oil futures contract in the U.S. was $65.72 per barrel, while the December Brent crude oil futures contract settled at $69.22 per barrel. During this pricing cycle, geopolitical factors continued to play a significant role in shaping the crude oil market. Escalating geopolitical tensions in the Middle East triggered a temporary rebound in international crude oil prices. However, OPEC+ decided to maintain its planned production increase in October, and rising U.S. oil inventories further fueled concerns about an oversupply. As a result, international oil prices struggled to sustain their upward momentum.

Supply Side: Sinopec's sales companies are implementing a listed price of 9,150 CNY/ton for butadiene.

The 160,000 tons/year butadiene plant of Fushun Petrochemical is operating normally; it will undergo maintenance shutdown starting from August 14, with no plans for external sales currently, and is expected to restart in October.

The 200,000 tons/year butadiene plant of Shenghong Refining is operating normally, with a price of 9,020 CNY/ton.

Satellite Chemical's 90,000 tons/year butadiene unit has been restarted, with the price set at 9100 CNY/ton.

Demand Side: According to the commodity market analysis system, as of September 26, the butadiene rubber market in Northwest China has been consolidating within a narrow range. Downstream buyers have largely completed their pre-holiday stockpiling, while butadiene rubber futures prices remain weak and stable. Most downstream buyers are placing orders based on immediate needs, though some traders have slightly adjusted their quoted prices. Currently, mainstream quotes for butadiene rubber from suppliers such as Sichuan, Dushanzi, and Lande range between 11,650 and 11,750 CNY per ton.

Market Forecast: Downstream demand has not shown any significant increase recently, leading to an overall bearish market outlook. With rigid demand and cautious procurement intentions, the spot market is currently operating on a weaker side. Pre-holiday stockpiling activities are largely complete, leaving the market lacking positive catalysts. As demand remains subdued, the butadiene market is expected to experience predominantly weak, volatile trading in the near term. Key attention should be focused on post-holiday purchasing activity.