China butadiene prices likely to ease from highs on weak demand

In April, China's butadiene supply fell while weak downstream demand widened the supply surplus significantly. For May, limited supply cuts will fail to offset sluggish demand, pushing butadiene prices to soften from high levels.

In April, China's butadiene supply declined as some plants reduced operating rates or underwent maintenance. However, demand weakened far more significantly due to widespread downstream production cuts and shutdowns. The resulting supply-demand surplus reached 57,400 tonnes in April, a 65.42% month-on-month rise. Figure 1 China Butadiene Mainstream Market Prices