China's losses Chemical Maintenance

China's losses increase due to weak sentiment and lack of demand / Spot trade is now less important as attention turns to contract negotiations

Dec 17, 2021

The Chinese domestic market suffered losses and Asian butadiene prices dropped Dec. 16. As buyers had sufficient stock, it was becoming more difficult to negotiate deals on a dollar-fixed-price basis for import cargoes. Congestions at ports made it more difficult to deliver cargoes to east China. Sellers preferred to keep higher selling prices and were not in rush to load cargoes. According to market sources, the price gap between buyers and sellers was increasing by nearly $80-$100/mt. The trade for a 1,500-2,00 mt spot cargo was reported to have been completed on a floating basis at a lower discount than CFR Northeast Asia for South Asia and Southeast Asia. However, details of this trade were not available. Market participants stated that buyers and sellers were more interested in spot trades than they are in term contracts.

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