Complementary stocks need to cause Asian butadiene prices to rebound now

The business agency reported on July 2 that butadiene (BD) spot prices in Asia may increase further in July due to inventory needs, but the uptrend may remain for a short time, as demand continues to soften, while deep-sea cargo will Increase supply, industry sources said. It is said that about 30,000 tons of European butadiene cargo will arrive in Asia in July and August.

According to ICIS, as of the week of June 22, the spot price of butadiene was 1,920-1,950 U.S. dollars per tonne CFR in Northeast Asia, which was up 50-120 U.S. dollars per tonne from the previous week. “Because of the need for supplemental inventory, several buyers are currently looking for replenishment. They can even pay more than US$2,000/tonne CFR in Northeast Asia. But the market outlook is still unclear, and it is unclear whether the price rise is sustainable. ," said a trade trader.

In addition, due to the insupply of indirect supply outside the ethylene unit of Formosa Petrochemical's McKinsey ethylene plant on June 20th, it will also play a role in driving up prices. Unscheduled shutdown of Formosa Petrochemical will delay the shipment of about 3,000 tons of butadiene to the factory, market sources said. According to relevant sources, Formosa Plastics plans to restart the No. 2 cracker on July 2 or 3 and 3, and restart the No. 3 cracker on July 12 or 13. Before that, Asian butadiene prices have continued to decline for four consecutive months, which is 55% lower than the 4,000 US dollars/ton in early February.