Strengthening market conditions for downstream products have driven up domestic butadiene prices in China.

1. Daily Summary

① On October 23, Sinopec East China raised its ex-works butadiene price by CNY 250/ton, effective today at CNY 13,600/ton. Downstream synthetic rubber prices rose accordingly.

② On October 23, the capacity utilization rate of the domestic butadiene industry stood at 65.92%, remaining stable compared to the previous working day.

2. Spot Market Overview

Table: Domestic Butadiene Price Summary (Unit: CNY/ton)

Data Source: Chempricehub Information

Based on the delivered price in the Shandong Luzhong region, today's price closed at CNY 13,775/ton, a week-on-week increase of CNY 325/ton. Today, domestic butadiene market prices trended upward. Geopolitical conflicts in the Middle East kept crude oil prices high, and the market for key downstream products continued to strengthen. Sellers adjusted their offers upwards, and supplier prices were raised. Although downstream buyers remained cautious in procurement, transaction volumes were average, yet the overall market sentiment strengthened. The delivered price range in Shandong Luzhong was CNY 13,700–13,850/ton, while the reference price for tank truck pickups in East China was around CNY 13,500/ton.

On October 23, the capacity utilization rate of the domestic butadiene industry was 65.92%, remaining stable compared to the previous working day.

Regarding theoretical production profit, on October 22, Japanese naphtha prices rose slightly, while Sinopec's butadiene price held steady at CNY 13,350/ton. Consequently, the theoretical production profit for butadiene via C4 extraction declined. The calculated profit for the C4 extraction process was CNY 3,296.33/ton.

4. Price Forecast

In the short term, crude oil prices are expected to remain at high levels, providing strong cost support. Some domestic plants have shut down, with further shutdown expectations for other facilities in the later period. As a result, domestic supply is unlikely to see significant increases. Market sentiment remains bullish, with sellers showing little willingness to offer low prices; instead, they are testing higher offers. Although downstream demand follow-up has been somewhat slow, and there is still resistance to high-priced butadiene, the lack of low-priced supply sources in the market suggests that the domestic butadiene market will likely continue to operate strongly.

5. Related Product Updates

Synthetic Rubber Market: Today, prices for both cis-polybutadiene rubber and styrene-butadiene rubber rose. In the Shandong market, Daqing BR9000 increased by CNY 150/ton to CNY 16,200/ton, while Qilu SBR 1502 rose by CNY 100/ton to CNY 16,100/ton.

6. Data Calendar

Table 4: Domestic Butadiene Data Overview (Unit: 10,000 tons, CNY/ton)

Data Source: Chempricehub Information

Notes:

1. ↓↑ indicates significant fluctuations, highlighting data dimensions with changes exceeding 3%.
2. ↗↘ indicates minor fluctuations, highlighting data with changes within 0–3%.