This week, the European butadiene market exhibited regional divergence. Persistently low water levels on the Rhine River through October have constrained plant capacities and barge transportation, leading to an increase in operational disruptions. Some producers have reduced operating rates, prioritizing the sale of C4 feedstocks while cutting butadiene output. Market attention has shifted from Northwest Europe and Rotterdam to the Mediterranean region, where new seaborne spot demand for butadiene has emerged amid concerns over potential production curtailments at local facilities.
With monthly contract negotiations approaching, market sentiment remains unsettled. The first round of talks commenced on September 18; however, most participants noted that European holidays have slowed negotiation progress. Additionally, rising feedstock and energy costs, coupled with macroeconomic risks stemming from Middle Eastern crude oil disruptions, are adding pressure. This week, Chinese synthetic rubber futures plunged significantly, prompting some European producers to lower their offer prices. FOB Rotterdam prices retreated to USD 1,200–1,250 per ton, with buyer indications starting from USD 1,100 per ton.
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