Fundamentals Strengthen, Butadiene Market Rises in China

December 15th, according to reports

According to the commodity market analysis system, the butadiene market in China has been fluctuating upwards during this period. From December 1 to December 15, 2025, the price of butadiene increased from 6,983.33 CNY/ton to 7,400 CNY/ton, a rise of 5.97%. The butadiene market in China has been fluctuating upwards during this period, with recent market trends showing strength. This is due to the increased willingness of suppliers to hold prices firm and the upward movement of international prices, making it difficult to find low-priced butadiene in the Chinese market. Recently, the futures market for synthetic rubber has shown strength, and the capacity utilization rates for major downstream products such as polybutadiene rubber and styrene-butadiene rubber have remained high. Steady procurement demand has provided solid fundamental support for the butadiene market, driving the price of butadiene to fluctuate and rise.

Cost Perspective: According to the commodity market analysis system, as of December 12, the settlement price for the January contract of U.S. WTI crude oil futures was $57.44 per barrel, while the settlement price for the February contract of Brent crude oil futures was $61.12 per barrel. During this period, crude oil prices initially fell and then rose. At the beginning of the period, regional tensions eased somewhat; meanwhile, weakening U.S. demand and the lingering impact of U.S. tariffs on global economic growth and demand expectations kept international oil prices at low levels. Later, OPEC+ oil-producing countries temporarily postponed their plans to increase production, and with prospects for a geopolitical peace agreement remaining slim, geopolitical factors drove crude oil prices higher.

Supply side: The listed price of butadiene from Sinopec's various sales companies is 7,350 CNY/ton, an increase of 150 CNY/ton.

Shenghong Petrochemical's 200,000 tons/year butadiene unit is operating normally, with an increase of 200 CNY/ton, and the price is now 7,500 CNY/ton.

Dongming Petrochemical's 50,000 tons/year butadiene plant is operating normally, with a bottom price of 7150 CNY/ton.

The 90,000-ton-per-year butadiene unit at Satellite Chemical Lianyungang Petrochemical is operating normally. The price has been raised by 100 CNY/ton, bringing the current price to 7,400 CNY/ton.

Demand Side: According to the commodity market analysis system, as of December 15, the butadiene rubber market in East China has risen. Recently, the Chinese synthetic rubber futures market has been fluctuating upwards, with some merchants slightly increasing their offers by 50-100 CNY/ton. Currently, the main quotes for butadiene rubber from Daqing, Yangzi, and Qilu are 10,800 to 11,200 CNY/ton; some private brands are quoted around 10,600 to 10,800 CNY/ton. Currently, the price difference between butadiene and synthetic rubber is significant. The capacity utilization rate of downstream butadiene rubber had previously reached a yearly high of 76%, and the capacity utilization rate of styrene-butadiene rubber has also increased to over 80%. The downstream industries are operating steadily with reasonable profit margins, which can effectively support the procurement demand for butadiene.

Market Outlook: Overall, China’s butadiene market is expected to continue its relatively strong and volatile trend in the short term. Supported by positive fundamentals, the spot market is likely to retain some room for upward movement in the near term. In the coming period, two key factors will warrant close attention: first, the actual pace of market transactions; and second, the timing of arrivals of imported supplies and the subsequent performance of synthetic rubber futures.