March Butadiene Market 'Stay High'

In March, the domestic butadiene market continued to be at a high level. The main influencing factors were the boost of international crude oil prices and the delayed resumption of operation of some units. In addition, major domestic manufacturers successively raised their ex-factory quotations. The butadiene market performance in March was solid. "Stunning".

The monitored sample data showed that the domestic butadiene market price at the beginning of the month was 8,365 CNY/ton, and at the end of the month (as of March 30) the domestic butadiene market price was 10,708 CNY/ton, an increase of 28.02% within the month and a year-on-year increase of 34.19%. In terms of the latest market price, the self-delivery transaction price of cans in East China refers to about 10,600 CNY/ton; the delivery price in Shandong Luzhong area is about 11,000-11,300 CNY/ton.

At the beginning of the month, the domestic butadiene market went up to a high level. Crude oil prices rose sharply during the week, which boosted the mentality of merchants; at the same time, higher crude oil and naphtha prices affected the cost of butadiene, and merchants expected that some production enterprises might reduce the burden in the later period, and the restart of the accident equipment in South Korea was delayed. , supply-side news brought support to the market.

In the middle of the month, the domestic butadiene market rose sharply. The sharp rise in crude oil at the beginning of the week has increased the pressure on the cost of butadiene. Under the negative expectations of some cracking units, the market supply has been supported. At the same time, the news has been boosted by the sharp rise in crude oil, and the price of domestic butadiene suppliers has been boosted. The continuous increase and the significant increase in the price of some auction sources has driven the spot market to break through 10,000 quickly.

In the second half of the month, the domestic butadiene market fluctuated. Supported by the high level of the external market, the prices of domestic mainstream suppliers have been continuously increased, which has boosted the mentality of some businesses. However, the sharp drop in crude oil during the week led to the weakening of cost support. In addition, as the price of butadiene rose to a high level, the costs and profits of downstream industries were under pressure. The operating rate of some industries decreased, and the demand for butadiene also weakened. , the rise slowed down.

At the end of the month, the domestic butadiene market rose to a high level. The rebound of crude oil has boosted the mentality of merchants. Coupled with the high price support of domestic mainstream suppliers and external disks, it is difficult to find low-priced sources in the domestic spot market. The focus of market discussions and transactions follows the supplier's strong performance.

In terms of enterprises, the listed price of butadiene of Sinopec East China Sales Company was stable at 11,000 CNY/ton. The 64,000-ton/year butadiene extraction unit of Shenhua Ning Coal is in normal operation. At present, a small amount of goods are exported, and the price is reduced by 100 CNY/ton to 10,500 CNY/ton. The 30,000-ton/year butadiene plant of Liaoyang Petrochemical Plant is running stably, and a small amount of goods are exported. The latest transaction price is 11,310 CNY/ton. Inner Mongolia Jiutai Energy's 70,000-ton/year butadiene oxidative dehydrogenation unit plans to restart in April, and the quotation has been raised by 100 CNY/ton to 10,400 CNY/ton.

External disk: As of March 29, the price of butadiene in Asia was stable: FOB Korea closed at $1,450/ton; CFR China closed at $1,470/ton. The price of butadiene in Europe remained stable: FOB Rotterdam closed at 1555 US dollars / ton, up 90 US dollars / ton; FD Northwest Europe closed at 1390 euros / ton, up 40 euros / ton.

In February 2022, there are 69 kinds of commodities in the chemical sector that have increased month-on-month in the commodity price rise and fall list, of which there are 35 kinds of commodities with an increase of more than 5%, accounting for 32.4% of the monitored commodities in this sector; the top 3 commodities are Lithium hydroxide (52.73%), butadiene (30.09%), mixed xylene (25.48%). A total of 33 commodities decreased month-on-month, and 14 commodities decreased by more than 5%, accounting for 13% of the monitored commodities in this sector; -26.93%), acetic acid (-26.24%). Both rose and fell by 3.1% this month.

The short-term high crude oil boosts the mentality of merchants and affects the high cost of butadiene, which makes it difficult to rapidly increase the operating rate of the industry. Although the high price of butadiene has led to pressure on downstream profits, and it is difficult to find strong support on the demand side, there is still a certain upward expectation for the price of domestic suppliers and external disks in the near future, which has significantly boosted the spot market. The butadiene analyst of the business agency predicts that the short-term domestic butadiene market will be mainly sorted out.