In the middle of April xxxx butadiene prices start to decline. One of the lowest prices in recent months is this downward tendency. The combination of growing geopolitical tensions, oversupply and declining downstream demand is the main cause of the price drop. The existing state of affairs erodes market sentiment and investor confidence.
The continuous trade disputes between the US and China are one of the main causes of the price decline. The dynamics of the Chinese petrochemical industry have changed dramatically as a result of the escalation of tariffs on US imports, particularly liquid petroleum gas (LPG) a vital feedstock for the manufacturing of butadiene. With Chinese buyers now avoiding US LPG procurement strategies have shifted to alternative suppliers in the Middle East and Africa. These logistical changes have disrupted raw material availability and increased...
