HOME Research Insight Butadiene Market - Revenue Pockets



Butadiene Market - Revenue Pockets


Butadiene is a basic petrochemical which is majorly produced as a by-product from ethylene and propylene manufacturing units. It is a key feedstock for manufacturing synthetic rubbers, resins, and various other chemicals & materials. Its main application segments include Styrene Butadiene Rubber (SBR), Polybutadiene Rubber (PBR), Acrylonitrile Butadiene Styrene Resins (ABS), Styrene Butadiene Latex (SB Latex), Adiponitrile, and Nitrile Rubber (NR).

China and U.S. are the biggest markets of butadiene, together consuming about 38.9% of the global demand in 2012. Also, both of these countries enclose the major opportunities in the butadiene market. China being the biggest consumer of butadiene and most of its derivatives is a net importer for butadiene and related products. To serve the highly growing demand of butadiene in China, more than 20 plants of butadiene derivatives are announced till date, and as per the current status, more than 50.0% of these plants will not be integrated with any butadiene manufacturing facility in China. In such scenario, most of these players will be relying on butadiene imports or supply of butadiene from the domestic Chinese market. This could turn out to be a huge opportunity for butadiene market players where they can increase their market share by providing sustainable raw material supply to non integrated butadiene derivative manufacturers.

U.S. may also turn out to be a significant export market for butadiene, which is majorly due to a shift in feedstock for manufacturing ethylene. Though the country has significant plant capacities with respect to butadiene, but after the development of shale gas, most of the plants switched to lighter feedstocks for manufacturing ethylene. This improved the plant economics of ethylene manufacturing units, but ultimately reduced butadiene to ethylene manufacturing ratio, reducing the domestic production significantly. The demand for butadiene is still budding at a considerable pace in the country, but the production trend of low operating rates is still expected to persist in the near future, hence creating a significant demand production gap in the country. So, the U.S. market may also turn out to be a significant opportunity for market players in the near prospect.

Related Reports:

Butadiene Market & Its Derivatives (SBR, PBR, ABS, SB Latex, Adiponitrile, NR, & Others) Market, by Applications & Geography - Trends and Forecasts to 2018
http://www.marketsandmarkets.com/Market-Reports/butadiene-market-1197.html

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