The butadiene market has experienced another sharp correction during 2017. During the year, the highest and lowest prices both appeared in the first half of the year, while the rest of the market was dominated by a narrow rangein the second half of the year.

In the second quarter of 2014 to the second quarter of 2017, the domestic butadiene market in China showed no increase in effective production capacity. The market price under the condition of “tight balance” fluctuated greatly and the industry remained highly speculative. In the second half of 2017, with the change in domestic demand and the entry of new domestic equipment, the market prices of butadiene inside and outside the disk will be slightly adjusted in light of the short-term domestic supply and demand.

Butadiene market at the end of last year gradually picked up. By the first quarter of 2018, affected by Christmas, Spring Festival and other holidays, the market is divided by holidays. The focus of the market is still the balance between supply and demand of butadiene and downstream: including the arrival and arrival of imports,the rhythm of purchasing and storage to midstream and downstream, domestic supply and demand and domestic important butadiene supplier price strategy. In addition, other topics such as environmental protection, commodity situation and liquidity will also have an effect from the periphery by the Urban Council.

In the future, the new production capacity will increase domestic supply, thus exacerbating the competition between domestic and foreign trades and even offsetting the scale of imports entering the domestic market. It is estimated that the butadiene market will narrow its operating range this year.

And this is the closing price of butadiene on January 23: