Asian butadiene rises $45/mt to 11-month high amid Middle East conflict

Asian butadiene market rose $45/mt day over day March 3, driven by tight supply concerns from the Middle East as well as Asian regions amid intensifying US-Iran conflict, market sources said.

Platts, part of S&P Global Energy, assessed CFR China butadiene price up $45/mt day over day at $1,320/mt March 3, the highest since April 7, 2025, when the price was assessed at $1,340/mt.

Platts assessed local China's butadiene price Yuan 800/mt higher from a day before to Yuan 11,000/mt March 3, or $1,381/mt on an import parity basis, according to Platts' data. It is the highest level since April 2, 2025, when the price was assessed at Yuan 11,200/mt, Platts data showed.

A market source said suppliers continued not to place any offers March 3, amid surging oil futures.

"It is difficult to buy a spot butadiene cargo now," said a China-based trader.

May ICE Brent futures rose $0.79/barrel day over day to $80.67/b at the Asian close on March. 3

Butadiene supplies from Middle East to be hit

According to the latest data from China's Customs, China's butadiene imports from the Middle East totaled 93,911 mt in 2025, accounting for around 17% of its total import volume of 541,823 mt.

Tight butadiene supply concerns have been looming in Asia as intensifying tension in the Middle East disrupted shipping operations there. Ship traffic remained halted in the Strait of Hormuz on the third day, even as oil loadings were observed at Persian Gulf states, Platts reported previously.

"Traffic through the Strait of Hormuz has come to a halt as insurance firms revoke policies on vessels transiting the waterway. Even so, vessel owners are becoming increasingly reluctant to send tankers through the Straits," said Daniel Hynez, ANZ Commodity Strategist, in a note.

Market sources said Asian butadiene producers would unlikely have room to cover the possible butadiene supply shortage from the Middle East.

A steam cracker operator in Asia noted that shipping disruptions through the Strait of Hormuz would also slash crude oil exports from the Middle East to Asia, affecting upstream refinery operations.

As a result, naphtha feedstock production in Asia is expected to decline, which could lead to decreased steam cracker activity and lower butadiene output, according to market sources.

Meanwhile, the downstream rubber market also increased, in line with the firmer butadiene feedstock market, according to market sources. China's local styrene-butadiene-rubber price rose by around Yuan 200-300/mt day over day to Yuan 13,000-13,200/mt March 3, according to market sources.