Butadiene CFR USGC activity softened in May as weekly assessments showed a decline, with prices easing by about 1.36% in last week. Early May saw tighter prompt availability supported by moderate buying from synthetic rubber producers, but momentum faded through the month. In mid-May, elevated tank inventories and domestic parcels weighed on spot sentiment, even as the broader monthly picture showed gains: prices rose around 3.7% for May. Downstream demand presented a mixed profile: synthetic rubber support briefly boosted prompt availability, yet overall demand from synthetic rubber, ABS and tyre manufacturing remained steady but unable to absorb the extra supply, keeping the market soft. Processors and ABS buyers held volumes, reinforcing a comfortable supply backdrop. Supply dynamics were driven by steady upstream operations and accessible logistics; a brief force majeure at a Houston facility did not materially tighten supply. Outlook remains mixed for Butadiene as domestic supply and inventories can cap upside, while renewed buying or tighter imports could restore support.
