SunSirs: The Rapid Rise of the 1,3-butadiene Market in the External Market Has Obviously Boosted the Domestic 1,3-butadiene Market
The domestic 1,3-butadiene market continues its upward trend. The market is still dominated by mainstream manufacturers. At the beginning of the week, 1,3-butadiene prices rose at a high level, and Sinopec and other suppliers raised 1,3-butadiene supply prices, boosting merchants to follow the higher quotations. According to the sample data monitored by SunSirs, as of June 18, the domestic 1,3-butadiene market price is 8,532 RMB/ton, the price increases by 24.58% month-on-month and the price increases by 144.48% year-on-year. In terms of price, the price of 1,3-butadiene in central Shandong is 9,350-9,450 RMB/ton, and the price of 1,3-butadiene in East China is about 8,850-8,950 RMB/ton.
Analysis review
The downstream just in demand was forced to accept high-priced sources of goods, and improved transactions supported the market to be strong. Although the transactions of sporadic high-price offers were limited, under the influence of export news, middlemen had no intention of lowering, and short-term market expectations were strong, and the market performance was relatively strong.
On the corporate side, Sinopec’s sales companies raised the supply price of 1,3-butadiene by 500 RMB/ton to 8,400-8,900/ RMBton. Nanjing Chengzhi’s 100,000-ton/year 1,3-butadiene extraction unit shut down for maintenance on April 9 and planed to restart on June 17.
External disk: As of June 17, Asian 1,3-butadiene prices increased: FOB Korea closed at 1,185-1,195 US dollars/ton, an increase of 10 US dollars/ton; CFR China closed at 1,195-1,205 US dollars/ton, an increase of 10 US dollars/ton. European 1,3-butadiene external disk prices were stable: FOB Rotterdam closed at 1,695-1,705 US dollars/ton; FD Northwest Europe closed at 1,295-1,305 euros/ton.
Market outlook
The external market continues to be strong, domestic sources of goods are actively exported, supply pressure is eased, and there is support from short-term supply. Under the strong support of export news, there is no low-priced supply in both domestic and foreign markets. 1,3-butadiene analysts of SunSirs expect the market to consolidate at a high level.