Supply of butadiene is a worry

- Jun 05, 2019-

Domestic butadiene market contrarian rise this month, the international crude oil prices diving, cliff type but butadiene outside dish prices continue upward, butadiene and the domestic market while the downstream demand hardly improved significantly, but the market prices are also higher volatility, which helped support the supply end, but at the end of this month, the market is gradually show signs of flip.

At present on the supply side, by the end of this month, jiang seuss state petrochemical 100000 tons of butadiene and shandong shandong jade emperor jade emperor capacity 70000 tons of butadiene unit has been reset to drive, at the same time, long tai energy in Inner Mongolia 70000 tons/year butene integrated device has been put into use, and have already, the partial products to market, and then, in the May 8 complete hand in nanjing shengwalunding paying court to YongQing 100000 tons/year oxidative dehydrogenation butadiene unit in June, also have the possibility of starting test.

In the last week of this month, fushun petrochemical company intended to ship up to 510 tons in a single day. If the large-scale shipment of northeast manufacturers in the later period is really a big blow to the market with poor trading volume.

In terms of current downstream demand, the recent shutdown and maintenance of the synthetic rubber device is relatively intensive, which will further weaken the support of the demand side of butadiene.

Therefore the place on put together is narrated, zhongyu think current butadiene market supply and demand information with the possibility of further deterioration, as manufacturers breakdown maintenance, butadiene manufacturer of weakening demand at present, the supply of butadiene will inevitably drag prices rising, and international aspects of the parts of butadiene plant shutdown for a long time, could restore starts, therefore expected to butadiene price movements may in the short term will remain sideways, but lower risk was growing to be reckoned with, change of concern from the supply situation.