- BR markets strengthened globally during Q1’26 as tighter butadiene availability, supply-chain disruption, and higher feedstock costs supported market sentiment.
- Feedstock pressure intensified after the Iran war and Strait of Hormuz disruption affected butadiene flows, with China sourcing around 17.0% of its butadiene imports from the Middle East.
- Downstream demand remained supported by tire manufacturing and automotive production, while improved vehicle registrations in Europe provided additional consumption support.
Asia
BR prices recorded the strongest gains in Asia during Q1’26. In China, quarterly average prices rose around 23.8% from the previous quarter. The market was primarily supported by higher butadiene costs, tightening supply expectations, and concerns regarding Middle Eastern feedstock availability. China’s dependence on the Middle East for approximately 17.0% of butadiene imports increased market sensitivity to the Strait of Hormuz disruption. Supply concerns intensified after the conflict disrupted petrochemical trade flows, leading to stronger procurement activity and firmer producer sentiment. Tire manufacturers maintained steady raw material demand, further supporting market conditions.
Europe
European BR markets followed a moderate upward trend during Q1’26. Feedstock support from butadiene remained the main driver, while downstream demand improved gradually. The automotive sector provided some support, with new EU car registrations increasing by 4.0% during Q1’26. However, gains remained limited because broader rubber consumption and industrial demand stayed relatively subdued compared with Asia. Higher logistics and energy costs associated with Middle Eastern disruptions also contributed to firmer market sentiment.
North America
North American BR markets showed mixed-to-firm conditions. Feedstock volatility linked to global butadiene supply disruptions supported the market, but demand from tire manufacturers was not strong enough to generate the same level of momentum seen in Asia. Buyers remained cautious amid uncertainty surrounding feedstock availability, freight costs, and downstream consumption patterns. Nevertheless, concerns regarding global petrochemical supply chains prevented significant market weakness.