China Petroleum and Chemical Corporation (Sinopec) reduced its ex-works prices for butadiene in eastern China by 8.2% (around Yuan 700 per metric tonne) amid an oversupply of the commodity, bringing the price down to Yuan 7,800/mt, or about US$962/mt on an import parity basis, sources said.
The last time the state-run company revised prices was on May 26, when they were reduced by Yuan 500/mt to Yuan 8,500/mt.
An oversupply of both butadiene and rubber in China has hurt buying interest for the synthetic rubber feedstock.
Natural rubber stocks at Qingdao were estimated at 215,900 mt on June 1, up 4.4% compared with 206,800 mt on May 15.
For synthetic rubber, Qingdao’s stocks totaled 55,800 mt, down 1.6% from 56,700 mt over the two-week period.
Several styrene-butadiene-rubber (SBR) producers were operating their plants at lower rates, thus reducing their butadiene requirements, in order to help reduce the glut in rubber supply.
Butadiene prices were assessed at US$955/mt CFR China on June 2, down US$60/mt week-on-week, due to weak demand, according to S&P Global Platts data.