Butadiene pricing reflects weak demand in volatile spot market

London - Over recent weeks, ChemAnalyst data, specially compiled for ERJ, has shown a sharp slide in butadiene prices, including a 38% decline (report) in the trading week ended 09 Dec - before steadying last week.

According to ChemAnalyst, these trends reflect recent developments in the spot market, unlike contract butadiene prices, which have not shown such a dramatic downturn.

“Spot prices have been our priority as they show better market dynamics and timely happenings while contract prices at times dilute the actual market sentiments,” explained ChemAnalyst.

While recent falls in the butadiene pricing, it noted, have been confirmed by several sources, the decline amplitude has varied according to the volumes traded, the firm continued. 

“As per our sources,” it stated, “orders traded with 100mt+ quantities have measured sharper drops [compared] to the smaller (<20mt) orders, as traders have been able to better negotiate given the weak demand fundamentals.”