Butadiene Prices Perceive Mixed Sentiments Across Global Markets

According to the most recent analysis by ChemAnalyst, the market movement of Butadiene has continued to rise since the beginning of this year. As per the data, Butadiene prices have climbed slightly across European markets during the second week of June 2022 due to continuous market disruptions alongside emerging fuel costs across the Europe region.

The ChemAnalyst data shows a significant hike of around 2% in Belgium in the week ending 10th June due to high input costs under the pressure of sky-high energy costs.

As per the latest insights, the PMI index of Belgium has been strong at a high value, supporting the price uptrend for all commodities notably, raw material cost in the country. Furthermore, the price of crude oil has also increased since the Russia-Ukraine conflict flared up, which has driven up the cost of Butadiene on the local market.

On the other hand, other significant European countries like the United Kingdom and the Netherlands also observed a substantial increase of around 2.0% and 1.2%, respectively, in the previous week. As per the recent market source, the price increase has been boosted by a steady rise in input cost on the account of growing demand from the downstream Elastomer segment. Likewise, the influence of rising natural gas and crude oil has also been reflected in the Butadiene across the domestic market, intensifying inflationary pressure on buyers and manufacturers as well.

However, the price of Butadiene witnessed a downward trend in the Chinese market owing to the plentiful availability of the product in the regional market coupled with low offtakes from the domestic market. Also, fluctuation in the crude oil also impacted the pricing of Butadiene in the local market. As a result, the prices of Butadiene drop by 1% in the second week of June.

According to ChemAnalyst estimation, the Prices of Butadiene are expected to surge in the Asia and Europe due to the ongoing market volatilities. In addition, the demand for Butadiene in the Elastomer segment is projected to increase. Also, the high energy rates impacted the manufacturing cost of the Butadiene across the region.