Butadiene/Crude C4

The major source of butadiene is as a byproduct in the steam cracking of naphtha and gas oil to make ethylene and propylene when it is extracted from the C4 cracker stream.

Butadiene is used primarily as a chemical intermediate and polymer component in the manufacture of synthetic rubber. Butadiene is the main raw material for synthetic rubber-styrene butadiene (SBR), polybutadiene (PBR), chloroprene and nitrile. SBR is the largest consumer followed by PBR. The next largest consumers are styrene butadiene latex (SBL) and acrylonitrile-butadiene-styrene (ABS) resins. It is also used to make adiponitrile (ADN) for nylon 6,6 production.

Butadiene is listed as a carcinogen, while dermatitis and frostbite may result from exposure to liquid butadiene and evaporating gas. In high concentrations, the gas can act as an irritant, producing coughing; and a narcotic producing fatigue, drowsiness, headache, vertigo, loss of consciousness, respiratory paralysis and death. 

Butadiene is both explosive and flammable. When heated, butadiene emits acrid fumes, and explosive peroxides may form when it is exposed to air. Since it evaporates easily, it is not expected to be found in water or soil.

 

ICIS pricing quotes butadiene in Europe, Asia-Pacific and the US Gulf

 

Frequency:

• Published weekly on Fridays

• Real time Price Alert Service (PAS) delivering market news and trends throughout the day.

 

Butadiene (EUROPE)

Weekly Price Assessments:

Butadiene Contract  Prices

• FD NWE Quarterly Contract (EUR/MT & conversion to US CTS/LB)

Butadiene Spot Prices

• FOB RDAM (USD/MT & conversion to US CTS/LB)

Crude C4 Spot Prices

• FOB NWE (USD/MT & conversion to US CTS/LB)

 

Butadiene (ASIA-PACIFIC)

Weekly Price Assessments:

Spot Prices

• CFR N.E.Asia (USD/MT & US CTS/LB)
• CFR Taiwan (USD/MT & US CTS/LB)
• CFR S.E.Asia ( USD/MT & US CTS/LB)

 

Butadiene (US GULF)

Weekly Price Assessments:

Contract  Prices

• FOB USG  (US CTS/LB & conversion to USD/MT)

Spot Prices

• CIF (US CTS/LB & conversion to USD/MT)

Crude C4 (CC4)  spot prices

• CIF (US CTS/LB & conversion to USD/MT)

 

General Information:

Assessment window:  Assessments are based on information supplied by market participants for the week to Friday at 1800 hours in London, Singapore and Houston.

 

Specifications: Price assessments for Butadiene are calculated on the basis of product of 99.5% purity. Standard purity for crude C4 quotes is considered to be 43% butadiene, 25% isobutylene content.

 

Timing: US spot prices are assessed for delivery within one to two weeks, or prompt basis. If delivery is intended for three to four weeks out, this will be referenced in the text but will not be included in the week’s formal assessment. In Asia, spot deals are mostly on a prompt basis with delivery within two weeks from settlement. For spot deep-sea cargoes, delivery is from four to six weeks, depending on the origin of product. If the deep-sea cargo is from Europe, it takes around four weeks. If from the United States, it takes about six weeks for delivery. In Europe, spot price assessments are on a weekly basis for delivery prompt to six weeks forward.

 

Terms: 30-60 days after bill of lading date.

 

Standard cargo size: Typical cargo sizes covered in the reports range between 1,500-3,000 tonnes.

 

Assessment basis: In Europe, the FD NWE contract is a quarterly price and may be subject to volume discounts. The price is confirmed by a wide range of players from the sell and buy sides of the market. The FOB export basis RDAM price represents confirmed business, or at times, market sentiment, depending on market conditions, while the crude C4 assessment is quoted on a FOB export basis and is usually a factor to NWE naphtha CIF cargo values.

 

In Asia-Pacific, contract prices in Taiwan, Korea and Southeast Asia are discussed. Contract prices in these countries are settled monthly and based on formulae components such as the US contract price, Europe quarterly contract price and CFR Taiwan spot price. 

 

In the US Gulf report, the FOB USG contract assessment is a monthly price and is typically settled shortly into the month that the price reflects. The contract price is also subject to volume discounts. The price is confirmed by a wide range of players from the sell and buy sides of the market. Finished butadiene is quoted on a spot CIF basis and this number represents confirmed business, or at times, market sentiment, depending on market conditions. US crude C4 is quoted on a CIF basis, while imported shipments (usually from Europe) are generally calculated as a factor to the price for naphtha NWE plus freight. The US crude C4 value can also reflect formula pricing, depending on market conditions.

 

Following the price ranges, each report carries a market commentary which includes information on contract discussions and nominations, details on spot transactions, supply/demand balance, general sentiment for price direction, production information when applicable and a general market overview on the week.

 

Each regional report carries specialised information dedicated to its markets. For example, the US Gulf report refers to business conducted in or with Latin America and NPRA survey statistics.

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