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Butadiene: Prices may continue to fall in the first half of the year

 Last Update: 2022-04-16
 Source: Internet
 Author: User

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Recently, market participants said that due to the steady rise in butadiene production and the pressure on downstream demand, it is difficult to be bullish on the demand side in the short term, and it is expected that the global butadiene market price will continue to fall in the first half of 2022

Supply will increase

In 2021, the decline in the production load of butadiene in the United States will cause the market price to continue to rise, thereby driving the global butadiene market to rise

However, U.

Asian butadiene supply will continue to increase in 2022 as new capacity comes on stream, especially in China, South Korea and Malaysia

Demand continues to be under pressure

The global butadiene market will also continue to be under pressure from a bearish outlook for the automotive industry in 2022

In Asia, several new nitrile latex plants are expected to start up to meet the growing demand for glove production

High costs squeeze profits

In addition, due to higher naphtha prices, the oil price difference between butadiene and raw naphtha in Asia continued to decline to a negative value in the fourth quarter of 2021, and it is expected that butadiene profit margins will remain weak in 2022

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