Sinopec hikes East China butadiene price by 7.7% on tight supply
China Petroleum and Chemical Corp., or Sinopec, increased its ex-works butadiene offers in eastern China to Yuan 21,000/mt, or about $2,542/mt on an import parity basis, up Yuan 1,500/mt or 7.7%, effective Tuesday, market sources said.
On January 5, the state-run company raised prices by Yuan 1,000/mt to Yuan 19,500/mt.
The price increase is a result of tight supply for January and February butadiene cargoes and strong demand from downstream derivatives such as butadiene and styrene-butadiene rubber, SB latex, and acrylonitrile-butadiene-styrene.
Supply and demand factors have pushed up spot butadiene prices to $2,650/mt CFR China, S&P Global Platts data showed Monday.
In China, domestic offers for delivered butadiene parcels were at Yuan 23,000/mt, a local end-user said.
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