Butadiene prices continue to show an uptrend across Asia and Europe
Butadiene prices continue to show an uptrend across Asia and Europe

Butadiene prices continue to show an uptrend across Asia and Europe

  • 08-Feb-2023 1:56 PM
  • Journalist: Shiba Teramoto

Hamburg (Germany): Butadiene price has continued their bullish rally across the Asia and European market supported by the increment in inquiries from downstream industries. Additionally, China's opening following the lifting of COVID restrictions allows for a quick recovery in economic activity. Meanwhile, inflationary pressures started to ease in European countries with swift action of central banks and improving economic dynamics in major European countries.

In the Chinese market, Butadiene prices have risen significantly since the conclusion of the Chinese Lunar New year holidays as market participants restocked the material available in the domestic market. In terms of domestic production, operating rates have increased as demand has improved in the domestic market. Several traders have reported that the rise in demand from the end-user synthetic rubber, polymer, and other competitive industries has strengthened the market prices of Butadiene. According to the national Bureau of Statistics, China's manufacturing activity rebounded in January as both supply and demand improved. The official purchasing index for China’s manufacturing sector raised from 47 to 50.1 in January. As a result, prices of Butadiene were settled at USD 1021/MT with a weekly increment of 4.5% during the same time frame.

Similarly, Butadiene price raised steeply in the German market backed by the high demand from downstream industries. According to the data, the Purchasing Managers' Index (PMI) rose to 47.3 in January 2023 but remained below 50 points in the German market.  Although, the input cost pressures were easing in Europe and softening the downturn that followed in economic activities with declining TTF Natural gas prices. Meanwhile, Brent Crude oil prices have also fluctuated in a narrow range. On the other side, the inflationary pressures have also been easing, bolstering consumer sentiments. In addition, the demand from downstream synthetic rubber, plastic, and other industries has accelerated and caused a rise in manufacturer price quotations. Thus, prices of Butadiene FD Hamburg were settled at USD 787/MT during the week ending 3rd February.

According to ChemAnalyst, “Butadiene prices are anticipated to increase in the Asia and European market as demand from downstream synthetic rubber and allied industries is likely to rise. The cost support from energy prices will remain volatile, and it would pressurize the pricing dynamic of Butadiene in the coming weeks.”

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