Butadiene Market Trends and Dynamics, Forecast to 2018

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Butadiene Market or 1,3-Butadiene is a basic petrochemical which is majorly produced as a by-product from ethylene and propylene manufacturing units.

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Its main application segments include manufacturing of Styrene Butadiene Rubber (SBR), Polybutadiene Rubber (PBR), Acrylonitrile Butadiene Styrene Resins (ABS), Styrene Butadiene Latex (SB Latex), Adiponitrile, and Nitrile Rubber (NR). SBR manufacturers are its largest consumers, which consumed less than one third of the total global demand of butadiene followed by polybutadiene manufacturers with latter being the fastest growing end use segment in overall market.

China and U.S. enclose the major opportunities in the butadiene market. In order to meet the highly growing demand for butadiene derivatives in China, various manufacturing plants are announced in the country, with only half of them being expected to be integrated with butadiene facilities. In such scenario, most of these players will be relying on butadiene imports or supply of butadiene from the domestic Chinese market.

Butadiene market scenario has changed significantly in the past, which is majorly due to a significant shift in feedstock for manufacturing ethylene. In 2006, about 39.5% of the feedstock being fed to ethylene crackers was light, and this number reached around 48.0% by the end on 2012.

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This reduced the operating rates of ethylene crackers with respect to butadiene, especially in U.S. So, budding demand for butadiene in the country and low operating rates may create a significant demand production gap in the country. So the Chinese and U.S. markets may turn out to be attractive markets for various market players which can be capitalized by capacity expansions and plant integration.

The top six players accounted for about 24.8% of the market in 2012. Royal Dutch Shell Plc. (The Netherlands) was the leading market participant with a market share of about 5.2% at the end of 2012. The company is among the major producers of chemical products in the world with segments that include upstream, downstream, and corporate with its chemical products that cater to various application industries such as the automotive, building & construction, electronics, plastic & polymers, etc.

In terms of market activities, Nizhnekamskneftekhim OAO (Russia) was the most active player from 2010 to 2013 with the highest share in the total development activities. The company took various efforts to improve its production through expansion activities and various collaborations. Subsequently, LANXESS AG and Braskem S.A. were the other active players to get into agreements and focus on expansions to obtain a wide presence.

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The research report provides a detailed analysis on quantitative as well as qualitative factors affecting the buta-1,3-diene and its derivatives market. Competitive scenarios of top players in this global market have been discussed in detail. We have also profiled leading players of this industry with their recent developments and other strategic industry activities. These include: Royal Dutch Shell Plc. (The Netherlands), LyondellBasell Industries N.V. (The Netherlands), TPC Group Inc. (U.S.), Sinopec (China), BASF SE (Germany), ExxonMobil Chemical Company (U.S.), Braskem S.A. (Brazil), ENI S.p.A (Italy), etc.

Scope of the report: This research report categorizes global butadiene market on the basis of applications and geography along with forecasting volumes, revenues and analyzing trends in each of the submarkets. It also contains the market for various derivatives at a country level.

On the basis of applications: This global market is segmented on the basis of industry applications as Styrene Butadiene Rubber (SBR), PBR, Acrylonitrile Butadiene Styrene Resins (ABS), SB Latex, Adiponitrile, Nitrile Rubber (NR), and others. Each application is further described in detail in the report with volume and revenue forecasts for each application.

On the basis of geography: A country level segmentation is done for both butadiene and its derivatives for key regions that include Asia-Pacific, North America, Europe, and ROW, and further for key countries in each region that include China, Japan, India, South Korea, U.S., Mexico, Germany, France, Russia, and Brazil.

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