What are the key supply-demand drivers behind recent 1,3-butadiene price rebounds in China?

Recent butadiene price strength in China stems from a tight supply-demand balance. On the supply side, multiple plants in Shandong and Nanjing underwent maintenance shutdowns, while northeastern producers reduced external sales, shrinking available spot volumes and prompting sellers to hold firm offers. On the demand side, lower feedstock costs earlier had restored downstream margins, prompting restart of idled butadiene rubber (BR) and SBS units, which lifted procurement. Within three days in mid-July, butadiene in the Luzhong region rose 250 yuan/ton, with auction prices hitting 9,800-10,000 yuan/ton. Cost support from upstream naphtha and crude also played a role, as did tight port inventories. This cost-push dynamic directly opened upside for synthetic rubber, with futures following spot higher.