During the current period (August 20–26, 2026), theoretical production margins for butadiene across different production processes rose significantly. According to Chempricehub data calculations, within this period the production margin for the C4 extraction process was 3,794.28 yuan/ton, up by +652.56 yuan/ton from the prior cycle; the oxidative dehydrogenation process margin was 501 yuan/ton, up by +614 yuan/ton; and the coal-to-naphtha process margin stood at 347 yuan/ton, up by +537 yuan/ton. The sharp rise in butadiene production margins during the week continued to be driven by expectations of tight supply–demand conditions, which supported domestic butadiene spot resources and mainstream supply prices. At the same time, modest declines in naphtha and high-olefin C4 market prices further pushed up margins for certain processes.
Table: Production margins for butadiene by process (unit: yuan/ton)
| Product | Current period | Previous period | Change | Change rate |
|---|---|---|---|---|
| C4 extraction | 3794.28 | 3141.72 | 652.56 | 20.77% |
| Oxidative dehydrogenation | 501 | -113 | 614 | 543.36% |
| Coal-to-oil | 347 | -190 | 537 | 282.63% |
Data source: Chempricehub
At present, the market continues to price in expectations of tight supply and demand in China and East Asia. However, there is an expectation that navigation through the Strait of Hormuz may conditionally resume, leaving cost-side support insufficient. In addition, growing downstream plant shutdowns and operating-rate reductions in China are weighing on some demand, and some participants expect the supply–demand tightness to ease somewhat. The problem of the butadiene industry chain being highly concentrated in butadiene has also become increasingly evident. As a result, further upward movement in butadiene production margins is expected to face greater resistance.
As of August 26, 2026, China’s butadiene market prices continued to rise. In the Luzhong area of Shandong, the weekly average delivered price was 12,625 yuan/ton, up by 755 yuan/ton week-on-week.
Sample description: Based on statistics compiled by Chempricehub, theoretical production margins were monitored for different butadiene production routes, using the relevant raw material prices, sample-enterprise prices for the different routes, and market prices.
Statistical basis: Butadiene production margins by route are calculated based on data as of Thursday of the current week, and are released before 17:00 every Friday (working day).
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