According to the Commodity Market Analysis System of Shengyi Society, from April 14th to April 21st, the domestic butadiene market price decreased from 8966.67 yuan/ton to 8100 yuan/ton, with a price reduction of 9.67% during the period. This cycle, the domestic butadiene market continues to decline significantly, with news coverage remaining bearish. The downstream synthetic rubber futures market has experienced a wide decline, and the cost and demand aspects have had a significant impact on the butadiene market, dragging down the mentality of the spot market. On the supply side, the port arrival situation this week is good. The overall supply of butadiene is relatively loose, and the demand side has been relatively rigid recently. The market trading is weak. As of April 21, the delivery price in the Shandong Luzhong area is 8700 yuan/ton, and the reference price for self pickup from the East China tank is 8500 yuan/ton.

On the cost side: International oil prices have fluctuated upwards this cycle, with the settlement price of the main contract for US WTI crude oil futures as of April 18th at $63.98 per barrel. The settlement price of the main Brent crude oil futures contract is $67.26 per barrel.
Supply side: The listed price of butadiene for various sales companies of Sinopec is 9000 yuan/ton, and it will be lowered by 1000 yuan/ton this week.
Demand side: According to the Commodity Market Analysis System of Shengyi Society, as of April 21st, the market situation of Shunding rubber in East China has been weakly consolidated. The futures price of Shunding rubber has been adjusted narrowly, with weak market transactions and narrow adjustments in merchant offers. At present, the mainstream prices in Daqing, Yangtze, and Qilu Shunding are 11700-12000 yuan/ton; Some private brands are priced around 11550-11800 yuan/ton. The price of raw material butadiene has significantly decreased, and the cost support for butadiene rubber has weakened significantly; The production of butadiene rubber has slightly decreased, and there is not much pressure on the supply side; Downstream production slightly decreased, and inquiries for Shunding rubber were light due to the impact of international trade trends. The merchant’s offer has significantly decreased.
Market forecast: The recent arrival of supply in Hong Kong is expected to be good, and some new domestic production capacity is expected to be put into operation, resulting in an overall bearish supply situation. The downstream synthetic rubber futures market on the demand side is declining, and the overall operating rate is also decreasing. The overall demand still maintains on-demand procurement. Overall, the supply and demand performance of the butadiene market is bearish, and it is expected to remain weak in the short term.