Butadiene Uses and Market Data

11 March 2009 15:53  [Source: Chemical Report]

Butadiene is a versatile raw material used in the production of a wide variety of synthetic rubbers and polymer resins as well as a few chemical intermediates.

 

The largest single use for butadiene is in the production of styrene butadiene rubber (SBR), which is principally used in the manufacture of automobile tyres. SBR is also used in adhesives, sealants, coatings and rubber articles such as shoe soles.

 

Butadiene can be polymerised to polybutadiene rubber (BR). The main outlet for BR is tyre products but is also used as an impact modifier of polymers such as high impact polystyrene (HIPS).

 

Butadiene is one of the components used in the manufacture of acrylonitrile-butadiene-styrene (ABS), which is the largest-volume engineering thermoplastic resin. A growing outlet for ABS is the electronics industry where it is used in business machines, computers, radios, televisions and telephone handsets while an important market is the automobile industry.

 

Other polymers made from butadiene include styrene-butadiene (SB) copolymer latex, which is used in paper coatings, carpet back coatings, foam mattresses and adhesives. Styrene-butadiene block copolymers have many applications ranging from asphalt modifiers in road and roofing construction to adhesives, footwear and toys.

 

Nitrile rubbers, made by the copolymerisation of acrylonitrile with butadiene, are used mainly in the manufacture of hoses, gasket seals and fuel lines for the automobile industry as well as in gloves and footwear.

 

Chemical intermediates manufactured from butadiene include adiponitrile and chloroprene. Adiponitrile is used to make nylon fibres and polymers. Chloroprene is the monomer to make polychloroprene, better known as Neoprene, which has a wide variety of uses such as wet suits, electrical insulation, car fan belts, gaskets, hoses, corrosion-resistant coatings and adhesives.

 

Butadiene is also used in the commercial production of butanediol and tetrahydrofuran. Butanediol is the feedstock for a number of speciality polymer resins such as polybutylene terephthalate (PBT). Tetrahydrofuran finds some uses as a solvent but it mainly provides the feedstock for the production of spandex fibres.

 

With synthetic rubber being the dominant outlet that will affect butadiene demand, the dynamics of the tyre and automobile industries have a major impact on butadiene markets. Demand for tyres in the new vehicle market has been hit as automobile production became severely impacted by the global economic downturn. Sales in the replacement tyre market have also declined as the high crude oil prices in the summer of 2008 discouraged motorists from taking unnecessary trips, resulting in motorists squeezing a few more months use out of existing tyres.

 

Over the longer term, global butadiene demand is expected to grow at a lower rate than the 3.2%/year experienced over the last five years, said US-based consultant CMAI. For example, global growth in the commodity based synthetic rubber and latex sector is expected to only average 2%/year. The slowing global economy is also causing declining demand for rubber goods, especially in the automotive sector.

 

Northeast Asia is the largest butadiene consuming region in the world. It is also the fastest growing region in absolute terms and on a percentage basis with most of the growth in China.

 

North America is the second largest butadiene consuming region with the majority of consumption in the US but also significant demand in Mexico. However, North America is expected to have the slowest growth of the major regions.

 

West Europe is a slightly smaller butadiene consuming region than North America. Slow to flat growth reflecting GDP rates is likely over the next five years.

 

The butadiene markets will continue to shift to Asia where the majority of the new butadiene production and consumption plants will be located. According to CMAI, more than 80% of global additions planned between 2008 and 2013 will be in Asia, mostly China. However, the higher growth in demand expected for the region will leave it a net importer.

 

More than 95% of butadiene is produced from crude C4s (CC4s) which are co-produced with ethylene from steam crackers. However, the availability of CC4s has become a concern with CMAI forecasting that the CC4 market balance will tighten globally from 2008 to 2013. Global supply will be enough to meet demand but regional differences will continue.

 

Availability of CC4s in North America has been an issue for some time. This is likely to continue as ethylene production is expected to decline slowly in North America. There is also a trend to slightly lighter feedstocks for ethylene plants, reducing the proportion of CC4s made. Availability of imports from traditional markets such as Canada and Turkey may also decline.

 

Availability of CC4s in northeast Asia has not been a significant issue but this may change in the future. Asian ethylene producers may shift a portion of their feedstocks away from naphtha to propane and butane reducing CC4 production. CC4 producers have also found alternative uses, primarily for propylene production using metathesis processes.

 

West Europe has had a surplus of CC4 supplies with some of the material hydrogenated for the motor fuel market or recycled back to the ethylene plant. It is also being used as a feedstock for an isononyl alcohol process and consumed in butene-1 and octene-1 production. In the future, the surplus of CC4s in West Europe is expected to be small.

 

(Updated: February 2009. Sources: CMAI 2009 World Butadiene Analysis; ICB Chemical Profile, 1 September 2008.)

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