China's 1,3-Butadiene Market Sees Initial Price Surge, Then Decline

The 1,3-butadiene market in China experienced an initial price surge followed by a decline during the first half of September 2026. Prices rose from 13,333.33 RMB/ton at the beginning of the month to 14,333.33 RMB/ton by mid-month, representing a cumulative increase of 7.5% over the period.

The initial price hike was driven by strong support from raw material costs and tight spot market liquidity, which fueled bullish sentiment among traders. However, prices retreated slightly as downstream purchasing slowed and units undergoing maintenance gradually resumed output, leading to sluggish trading at high price levels.

According to SunSirs, the cost perspective played a significant role in driving 1,3-butadiene prices up initially. The baseline for international oil prices steadily rose during the first half of September, increasing production costs for domestic ethylene cracking units.

The influx of imported material into the domestic market further boosted spot supply, and continued inflows of material resulted from the restart of units previously under maintenance. This eased supply tightness significantly, capping further price gains and causing prices to retreat slightly from their highs.