Category

Countries

Oscillation in Global Butadiene Prices Affects the Downstream Market Dynamics

Oscillation in Global Butadiene Prices Affects the Downstream Market Dynamics

Oscillation in Global Butadiene Prices Affects the Downstream Market Dynamics

  • 29-Jun-2022 4:26 PM
  • Journalist: Nicholas Seifield

Butadiene prices in the European market have been steadily declining in the fourth week of June, supported by ample inventories and trembling demand. Additionally, prices decreased with muted market sentiment due to growing production rates among the manufacturing units. Further, the market fundamentals have been deterred by a decline in demand from the downstream Elastomer segments. As a result, Butadiene prices were assessed at around USD 1485/MT in the week ending 24th June.

Additionally, the fall in Butadiene prices on the German market is a result of the decline in import prices from countries like the Netherlands and Italy. Also, the recent worsening in ties between Russia and Ukraine has caused the closure of some oil fields, and crude oil prices have fluctuated. Supply and demand are at a standstill in the butadiene market, and cost support is weakening. Moreover, the Russian -Ukraine war and alterations in freight costs contributed to the price decline in the domestic market.

Furthermore, long plagued by pandemic woes, continuous efforts to stabilize the industry and supply chain have led to crucial indicators showing signs of recovery, propelling China's logistics and circulation industry towards steady advancement. Moreover, Major transportation hubs are hastening the pace of production resumption, with the Shanghai Port's daily average container reaching 125,800 TEUs in June. Though, demand from the downstream in the fabrication of Butyl Rubber and plastic industries has remained muted. At the same time, prices of Butadiene have plunged by 1.0% in the week ending 24th June in the Chinese market.

Meanwhile, in the USA market, the prices of Butadiene have shown a stable trend on the back of the firm demand from the downstream Elastomer segments. Since the USA has imported fewer amounts of Butadiene from China, the freight rates for exports from Shanghai Port to the US West and US east base ports fell by 1.2% and 2.1% from the previous months, which supported the stable prices of imported Butadiene in the domestic market. Consequently, the prices of Butadiene have observed a slight inclination of around 0.8% in the week ending 24th June.

According to ChemAnalyst estimation, "the price of Butadiene is supposed to witness mixed sentiments throughout the global market. In addition, prices of Butadiene in the European and Chinese markets might tumble in July. At the same time, in the USA market, prices of Butadiene are expected to observe a minimal increase. Demand in the tire and plastic industries is likely to be steady. Also, the price changes supported by the variation in the freight charges along with the upstream Crude oil value throughout the worldwide market."

24X7

Track Real Time Prices

Related News

Despite Weak Demand, Butadiene Prices are Experiencing Stability in Europe
  • 12-Sep-2022 1:57 PM
  • Journalist: Patrick Knight
Butadiene Prices declined in China and the USA, While Prices Strengthened in Europe
  • 02-Sep-2022 4:46 PM
  • Journalist: Timothy Greene
Asian Butadiene Prices Demonstrate a Downward Trend Amidst Weak Demand
  • 19-Aug-2022 2:50 PM
  • Journalist: Henry Locke
Butadiene Market To Perceive A Stagnancy In The USA And Chinese Market
  • 04-Jul-2022 4:34 PM
  • Journalist: Li Hua