In February 2025, the domestic weak demand for Butadiene from the key downstream segment i.e., Acrylonitrile Butadiene Styrene (ABS) led to a fall in its prices in China.  ABS is a key derivative of Butadiene and is primarily used in the automotive industry. The fall in automotive sector demand contributed to this downward trend, leading to a decline in butadiene prices as well. The decline in naphtha prices, a key feedstock for butadiene, further contributed to the downward pressure on butadiene prices in the market.

On the contrary, the price trend of butadiene in the U.S. witnessed an upward market moment as the automotive sector experienced significant growth compared to the beginning of 2025. The automotive industry plays a crucial role in the use of butadiene, as its derivatives are extensively used in the manufacturing of vehicles. The rise in butadiene prices reflects the increasing demand in the automotive sector, focusing on its strong influence on the market dynamics.  In addition, manufacturing activity provides insight into the expansion of the rubber industry, where butadiene is consumed extensively to produce materials like synthetic rubber. 

At the same time, Japan which is characterized by its Innovative technology and severe quality standards, the tire market is also part of it which is a dynamic segment of the automotive industry. The decline observed in the price of butadiene in the Japanese market whereas its price derivatives were stagnant reflecting shifts in supply-demand dynamics within the sector. As the key derivatives of butadiene are very essential for the manufacturing of automobiles which means Butadiene plays a very pivotal role in the industry.

On the Western front, the cautious pricing strategies in European countries like Germany, France, Belgium & UK, and challenging trading dynamics kept the prices of butadiene stagnated during the last week of February as well.  Meanwhile, key butadiene derivatives such as ABS, PBR, and SBR recorded a slight price increase. The downstream industries of butadiene maintained a stable demand-supply balance. Butadiene remains a crucial raw material primarily used in the automotive and rubber industry. 

Compared to Malaysia's annual trend, the automobile sector experienced a significant decline in sales, leading to fluctuations in demand and supply within the automotive industry. As a result, butadiene prices dropped because its key derivatives are primarily used in automotive manufacturing. The rubber sector also saw a downturn, further impacting butadiene prices and contributing to an overall bearish market trend. This shifting pattern will likely influence the upcoming annual trend in the automotive sector, potentially signaling prolonged market challenges.