Will China BD Price Hit a New High in Q2?
In Q1, 2021, China’s butadiene market price presented a reverse N-shaped trend overall. The market price of butadiene in Q1, 2021 was higher than the average price in 2020. Yet, the fluctuation range of butadiene price in Q1 narrowed from last year. In March, the market price of butadiene surged to a quarterly high. In Q2, China’s butadiene supply will continue to head up. There will be certain supply pressure as some downstream units will be in the downtime. Thus, the butadiene price will hardly hit a new high in Q2, and detailed analysis is as follows.
BD prices from January to April 2021 fluctuated limitedly Y-O-Y.
In January 2021, due to the relatively abundant supply in the domestic market and the temporary shutdown of rubber units in East China, the negotiation price of butadiene moved down constantly for lack of support from the supply side. With the butadiene price dropping and the Spring Festival holiday approaching, some downstream buyers replenished goods when the butadiene price was low. When the butadiene price was at a low level, downstream users showed high purchasing appetites. Besides, in March, China’s butadiene units began to take maintenance in succession, and expected units’ maintenance bolstered market players’ sentiment somewhat.
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