China Petroleum and Chemical Corp., or Sinopec, on Monday raised its ex-works butadiene offers in eastern China to Yuan 12,300/mt, or $1,494/mt on an import parity basis, up Yuan 500/mt or 4.2%, market sources said.
Previously, the offers stood at Yuan 11,800/mt, where they were since November 15, when they were raised by Yuan 400/mt.
Sinopec’s price hikes follow bullishness in synthetic rubber markets after natural rubber futures rose.
The April 2017 natural rubber futures contract traded on the Tokyo Commodity Exchange hit Yen 209.5/kg last Friday, up from Yen 205.5/kg a week earlier, TOCOM data showed.
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The bullishness has created demand for December and January butadiene cargoes.
Last week, a deal for a H2 December-loading cargo was heard concluded at $1,460/mt FOB Korea, bound for East China.
Also, a Southeast Asian cargo for late December loading was heard sold in the low $1,400s/mt CFR China after it was bought in the low $1,300s/mt FOB SEA, market participants said.
