Asian butadiene spot prices may go lower due to oversupply in the next few weeks

According to reports, due to the planned overhaul of several sets of synthetic rubber production facilities in Korea, which may cause supply exceeding demand, spot prices of butadiene in Asia may decline in the next few weeks, market participants said. According to ICIS, the spot price of butadiene in Asia at the end of September was 1,970-2,050 USD/ton (approximately 1,517-1,579 EUR/ton) CFR Northeast Asia, which was the same as the previous week.

Due to weak demand, the shipment of 2,000 tons of butadiene in October was not responded to by buyers. There was no transaction at the close of October 4th. Market participants said that because of China National Day and the Korean Mid-Autumn Festival holiday, traders stopped trading. The main buyer, South Korea's Kumho Petrochemical Company (KKPC), caused a slowdown in demand due to the launch of the spot market. It is alleged that Kumho Petrochemical Company plans to stop overhauling several synthetic rubbers for three weeks and will reduce the spot demand for butadiene by approximately 17,000 tons, industry sources said.