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PetroChina cut its ex-works prices for butadiene in northeast China by 9%, effective Wednesday, local end-users said.

Its two subsidiaries in the region, Fushun Petrochemical and Liaoyang Petrochemical, are offering butadiene at Yuan 15,500/mt, or about $2,050/mt on an import parity basis, down Yuan 1,500/mt from Yuan 17,000/mt on August 17, when it slashed prices by Yuan 1,000/mt.

End-users attributed the price cut to poor demand from downstream synthetic rubber producers, who rely on butadiene as a major feedstock. The producers themselves said major customers, mostly tire makers, have reduced their requirements because of oversupply concerns.

PetroChina is a subsidiary of China National Petroleum Corp.