LONDON (ICIS)--Butadiene prices have surged globally following Middle East supply disruptions linked to the US‑Iran conflict. Europe BD editor Melissa Hurley discusses the current market conditions and challenges facing the global market with editors Ai Teng Lim, Elaine Zhang and Senior BD analysts Gawaine Preston (Europe) and Ann Sun (Asia) and Preeti Sriram covering (US).

Asia

• Asian butadiene output losses could to deepen into April and beyond, as the ongoing Middle East conflict shows no sign of easing, limiting any near‑term recovery in regional BD production.
• Synthetic rubber producers considering further production cuts in April given the ongoing tight supply and higher BD prices

Europe

• Soaring naphtha costs pushed BD producer margins negative in March, resulting in a sharp triple‑digit rise in the April contract price - up 50% month-on-month
• Export prices surged around 80% month on month in March
• Tight availability amid planned BD/cracker turnarounds making it challenging to export volumes towards Asia

US market

• US BD prices also rising, but spot export supply remains tight due to outages and turnarounds

LONDON (ICIS)--Europe oxo-alcohols and derivatives markets are in significant flux as volatility spikes off the back of the ongoing conflict in the Middle East and associated severe shipping disruption through the Strait of Hormuz. Supply constraints and rising costs are heavily impacting sentiment into late March with sellers pushing hard for price increases across the board.

Glycol ethers editor Cameron Birch speaks to oxo-alcohols and butyl acetate editor Marion Boakye and acrylate esters editor Mathew Jolin-Beech about market conditions and expectations for the near future.

Surging inflationary pressures and dwindling economic growth expectations are pushing parts of the global economy towards the kind of stagflationary footing seen during the 1970s oil crisis, while supply shocks and feedstock surges are starting to remap chemicals flows once again.

· European chemical markets have flipped from oversupply to tightness

· Supply disruptions in Asia and the need to source material may reduce flows to Europe

· China is better-equipped to deal with the Strait of Hormuz closure than many of its neighbours

· The crisis could prompt Asia Pacific players to re-evaluate their heavy reliance on Middle Eastern feedstocks

· The US chemical industry is comparatively insulated and profiting from the turmoil: with abundant domestic oil, gas and cheap ethane

· Economic sentiment is weakening as conflict-driven costs ripple through the global economy