Butadiene in 2006 is expected to reach a balance between supply and demand

Since August, the Asian market price of butadiene in 1300 U.S. dollars / ton over last year as the price of 700 U.S. dollars / ton. Asia butadiene in the spot market prices began in the first quarter of this year, or 250 U.S. dollars / ton, by the end of March prices reached 1400 U.S. dollars / ton high. "Asia Chemical Weekly," analysts pointed out that the Asian market butadiene still base-level support for the bull market, the latter part of this year, the price will be maintained at 1000 U.S. dollars / ton.

Butadiene market to be strong this year, due to its lower reaches in the area of strong growth in demand. Butadiene by the end of 2003 China's annual production capacity reached 933,000 tons in 2004, the actual production of 873,000 tons, so that the production capacity and production can not meet domestic demand, have a large number of imports each year, only last year imported 195,900 Tons, an increase of 17.44 percent last year. Since the beginning of this year, China's automobile, such as shoe-making industry has maintained a high growth rate, which led to the synthetic rubber, and butadiene is also growing demand. It is estimated that in 2006, China's butadiene, the total consumption will reach 1,170,000 tons. At the same time, people should see that as a result of the lower reaches of the new device's ability to limit consumption of butadiene in China is expected to grow to slow down. At the same time, as China's ethylene existing large-scale technical transformation of enterprises and Sino-foreign joint venture ethylene projects put into operation one after another, China's butadiene production capacity will be relatively rapid growth. It is estimated that in 2006 China's annual production capacity of butadiene will reach 1,300,000 tons, the market will be in short supply of basic supply and demand into balance.