H1, 2020 China Butadiene Industry Data Interpretation
2020 will witness the intensive butadiene capacity expansion. There will be 780kt/a newly added butadiene units released in China. At the beginning of 2020, the public health event resulted in sluggish demand and blocked export. In Q2, batches of butadiene resources were transported to Asian market, especially to China. Thus, China’s butadiene market endured high supply pressure. Due to sufficient resources in H1, the butadiene price was at a low level and the profit of the downstream industry improved. In H2, 2020, with the demand recovering in succession and new butadiene capacity being released, China’s butadiene market will see new supply and demand pattern.
China’s butadiene supply continued to rally.
The import volume of butadiene moved up notably Y-O-Y.
In H1, 2020, the import volume of butadiene in China also saw an obvious Y-O-Y increase. As seen from the import data, the import volume of butadiene from January to May was 168.7kt, up 17% Y-O-Y. In June, the import volume of butadiene will be much higher from the same period of last year, which will probably hit an annual high. In H1, 2020, the total import volume of butadiene will exceed 200kt, reaching a new high over the past few years. The imported butadiene resources will replenish China’s butadiene market obviously.
