Supply and Demand Both Weak, Butadiene Market Declines

November 10th, according to news

According to the commodity market analysis system, the butadiene market in China first declined and then increased during this period, with an overall downward trend. From November 3 to November 10, 2025, the price of butadiene decreased from 7133.33 CNY/ton to 6866.67 CNY/ton, a drop of 3.74%. The overall butadiene market in China remained weak during this period. As prices continued to fall, it attracted some downstream buyers to replenish their inventories at lower prices, improving the trading atmosphere in the spot market and leading to a slight recovery in spot market prices. However, due to the consistently weak terminal demand and a bearish supply situation, the butadiene market as a whole still operated under a weak trend.

Cost Perspective: According to the commodity market analysis system, as of November 7, the settlement price for the December contract of U.S. WTI crude oil futures was reported at $59.75 per barrel, while the January contract for Brent crude oil futures settled at $63.63 per barrel. During this pricing cycle, crude oil prices initially surged before declining. At the beginning of the cycle, China and the U.S. held trade talks, boosting market risk appetite. Additionally, heightened tensions in South America temporarily supported higher crude oil prices. However, later on, OPEC+ announced a new round of production increases, reigniting concerns about long-term supply overhang. Meanwhile, regional geopolitical tensions eased somewhat, yet weakening demand in the U.S., coupled with lingering uncertainties over U.S. tariffs—issues that continue to weigh on global economic growth and demand expectations—ultimately drove international oil prices lower.

Supply side: Sinopec's various sales companies are listing the price of butadiene at 6,900 CNY per ton.

Shenghong Petrochemical's 200,000 tons/year butadiene unit is operating normally, with a price reduction of 100 CNY/ton, now priced at 6,900 CNY/ton.

Dongming Petrochemical's 50,000 tons/year butadiene unit is operating normally, with 196 tons sold externally at a minimum price of 7,050 CNY/ton.

The 90,000-ton-per-year butadiene unit at Satellite Chemical Lianyungang Petrochemical is operating normally, with a price reduction of 200 CNY/ton, now priced at 6,800 CNY/ton.

Demand Side: According to the commodity market analysis system, the butadiene rubber market in Northwest China is currently consolidating at low levels. Butadiene rubber futures prices are fluctuating weakly, with traders making slight adjustments to their quoted prices. As of November 10, mainstream quotes for butadiene rubber from suppliers such as Sichuan, Dushanzi, and Lande ranged between 10,300 and 10,600 CNY per ton.

Market Forecast: With the partial resumption of operations at certain Chinese facilities in October, the supply side remains relatively ample, leading to generally weaker spot market prices. This has encouraged some downstream players to actively enter the market and replenish their inventories. However, overall demand continues to be driven primarily by essential, rigid needs.

Market sentiment remains broadly subdued, with buyers maintaining a cautious approach amid limited intentions for robust procurement. As a result, the spot market is expected to continue its weak, volatile trend in the near term. Key attention should remain focused on downstream purchasing activity, as it will play a critical role in shaping the market's direction over the coming weeks.