China butadiene prices slump while downstream demand to slowly recover

China butadiene prices plunged 20.34% (late March to April, OilChem) on weak domestic and export demand. This eased downstream cost pressures, with PBR losses narrowing by Yuan 1,751/t. Rising Korean cracker runs and European cargo arrivals may curb export demand; monitor May turnarounds and Middle East volatility.

In April, domestic butadiene and major downstream product prices have retreated from highs, mainly due to weaker domestic and export demand as well as regional supply-demand imbalances. However, as downstream cost pressures ease, production profits are slowly recovering, which is expected to alleviate the weak demand situation. China Butadiene &