Spot butadiene (BD) prices in the US Gulf Coast plunged to new lows on Friday after three weeks of stable pricing, market sources informed SSESSMENTS.COM. Spot BD prices plummeted by 4.75 cents from the previous week to 9 cents/pound CIF USG, its lowest since 8.25 cents/pound recorded on December 4, 1986. The prices have fallen by 37 cents or more than 80% from the year-to-date peak of 46 cents/pound on January 31.
Market participants told SSESSMENTS.COM that they expected prices to remain under pressure into the later half of this year. According to them, slow recovery in the automotive sector after the coronavirus pandemic would weigh on BD prices in the rest of this year. Automakers and their suppliers, including tyre manufacturers are reopening their North American factories this month. However, demand for passenger vehicles is expected to be sluggish.At the same time, auto manufacturers will take time to work through their ample raw materials and finished goods inventories.
Market sources also informed SSESSMENTS.COM about ample global BD supply amid deteriorated demand. Weak BD demand and prices are expected to prompt US operators to reduce propane and butane as their feedstock and use more ethane which yields the least amount of crude C4 (CC4). An industry survey showed that ethane accounted for 78.5% of US feedslates in March, compared to 73.9% in October 2019 when operators preferred butane and propane which were cheaper and more abundant.
Tags: Americas,Butadiene,English,News,Styrenics,US
Published on May 26, 2020 11:17 AM (GMT+8)Last Updated on May 26, 2020 11:17 AM (GMT+8)
