Suppliers Hold Firm on Prices, Slight Increase in Butadiene Market in China

November 17th, news

According to the commodity market analysis system, the Chinese butadiene market showed a fluctuating upward trend in this cycle. From November 10 to November 17, 2025, the price of butadiene increased from 6900 CNY/ton to 6966.67 CNY/ton, a rise of 0.97%. In this cycle, the Chinese butadiene market showed a fluctuating upward trend. The previous decline in prices attracted some downstream buyers to replenish their inventories at lower prices, which improved the trading atmosphere in the spot market and led to a slight recovery in spot market prices. Refineries generally maintained a strong price-holding mentality, making it difficult to find low-priced supplies, thus driving the overall market prices upward. However, due to the consistently weak terminal demand, the extent of the price increase was limited.

Cost Perspective: According to the commodity market analysis system, as of November 14, the settlement price for the December contract of U.S. WTI crude oil futures was $60.09 per barrel, while the January contract for Brent crude oil futures settled at $64.39 per barrel.

Supply side: Sinopec's various sales companies are implementing a listed price of 7,000 CNY per ton for butadiene.

Jilin Petrochemical's 340,000 tons/year butadiene plant is operating normally, with 290 tons sold externally. The floor price is 6,400 CNY/ton, and the transaction price is 6,430-6,450 CNY/ton.

Dongming Petrochemical's 50,000 tons/year butadiene plant is operating normally, with 224 tons sold externally at a minimum price of 6,950 CNY/ton.

Satellite Chemical Lianyungang Petrochemical's 90,000 tons/year butadiene plant is operating normally, with a price of 7,000 CNY/ton.

Demand Side: According to the commodity market analysis system, the butadiene rubber market in China has shown a slight upward trend. On one hand, the price of butadiene, the raw material, has weakened and declined, significantly lowering the cost base of polybutadiene rubber; some previously shut down facilities have restarted, leading to a slight increase in the production of polybutadiene rubber, which slightly increases the supply pressure. On the other hand, the downstream tire manufacturing sector has seen a slight recovery in operations, providing support for the demand for polybutadiene rubber, but there is resistance to high-priced supplies. The fundamentals of the polybutadiene rubber market are relatively weak. As of November 17th, the market for polybutadiene rubber in the northwest region of China has shown a slight increase, with the futures price of polybutadiene rubber fluctuating narrowly. Traders have raised their quotations by around 50-100 CNY/ton. Currently, the main quotations for polybutadiene rubber from Sichuan, Dushanzi, and Lande are between 10,600-10,800 CNY/ton.

Market Forecast: Recently, spot market trading has remained decent, with refineries showing strong willingness to hold prices. However, supply conditions continue to remain relatively ample, coupled with weaker international markets, limiting the upward momentum in the market. As a result, the butadiene market is expected to experience predominantly volatile yet bullish movements in the near term, with close attention needed on downstream purchasing demand.