06 October 2013 13:07 [Source: ICIS news]
BERLIN (ICIS)--Butadiene (BD) demand is not likely to improve until at least the second quarter of next year, a major BD consumer said on Sunday.
Speaking on the sidelines of the 47th annual European Petrochemical Association (EPCA) meeting, the consumer said that it did not anticipate any real improvement in demand from the automotive sector – the key end-use industry for BD – until the second quarter and then only because traditionally peak demand comes in the second quarter.
“Historically speaking, demand is best in the second and maybe third quarters of the year,” the consumer said.
Because of this lack of structural demand, it said the current upwards run on BD spot pricing was not sustainable.
Other BD market players echoed this view.
“We are cautiously optimistic for the second half of 2014,” said another consumer, adding “but not before then.”
The EPCA meeting runs for 5-9 October.
Follow Nel on Twitter
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections