In November, under pressure from a lot of selling pressure plate, East market butadiene Price Price accelerate the decline. November 23, the market price of 13,000 yuan (t price, the same below), fell 2,800 yuan over the beginning of November, a drop of up to 17.72%, down 102.56% compared to the average price in February of this year, since the beginning of this year hit a new low price.
It is understood that, butadiene prices collapsed mainly due to the following aspects:
One of the prices of the industrial chain. Butadiene is mainly used for the production of butadiene rubber, styrene-butadiene rubber, SBS and ABS and other products. Domestic styrene butadiene rubber in the second half of the year fell sharply. November the average price of 15,140 yuan, compared with the July average price fell to 2,870 yuan, down 15.93% the Southeast Asian styrene butadiene rubber November the average price fell by 8.45% compared to July.
Second, the rubber stock. According to statistics, as of the end of October, Qingdao Free Trade Zone of natural rubber inventories rose to 180,500 tons, synthetic rubber stocks rose to 4.65 million tons, adhesive inventories rose to 4.43 million tons, a total of 271,300 tons.
Rubber futures prices fell sharply. Shanghai rubber futures in October, the highest price of 25,900 yuan, prices fall in November, but when the bottom of 23,175 yuan a slight rebound, 23-day price of 23,516 yuan, the highest price fell compared to October 2384 yuan a decrease of 9.25%.
Fourth, a substantial increase in imports of butadiene. In July this year, the speed of butadiene imports increased significantly, including 34,664 tons of imports in July, an increase of 20,723 tons compared with 13,941 tons in June. Expected annual butadiene imports will reach 26 million tons, an increase of 80,000 tons, an increase of 44% over the previous year.
Fifth, it is able to focus on expansion of domestic production. This year, China’s Qi Xiang Tenda 100,000 tons, 120,000 tons of Fushun Petrochemical, Daqing Petrochemical 90,000 tons and Chengdu, 150,000 tons of ethylene, butadiene plant has put into operation.
End of butadiene market long and short coexist. Dec. shortage of funds in the market, demand continues to shrink, competition is more intense, more unfavorable factors in the case, it is expected the butadiene price at the end there is still room to fall, but some support at 12,300 yuan.
Source: CRIA
