Weekly Market Review of the Asian Butadiene Market (October 12–16, 2026)

This week, the Asian butadiene market consolidated at high levels. Supply was tight, while downstream demand remained weak, resulting in a stalemate between buyers and sellers. A trader primarily engaged in arbitrage between Europe and Asia noted that supply constraints in the European market, coupled with a sharp rise in naphtha prices, have driven up European butadiene prices. The trader estimated that Northeast Asian CFR prices would need to approach USD 1,800/tonne to open an arbitrage window for European cargoes flowing into Asia. Olefin producers in Southeast Asia believe that the sustained increase in naphtha prices over recent weeks presents upside potential for butadiene prices. However, a South Korean producer of ABS and SBS stated that it is difficult to pass cost pressures down to customers, noting that the company has already reduced plant operating rates since October. The company also forecasted that downstream demand may weaken further before year-end.