ICIS price assessments for butadiene (BD)/crude C4 are widely used by market players in contract and trade deals.
If you’re looking for a 360° perspective of the global BD/C4 markets, our short-to-long term solutions – from pricing data, breaking news and market analysis, to supply and demand forecasts – will power your decision-making process by bringing clarity through data, ensuring you are able to evaluate the industry from every angle.
Updated to Q1 2019
Butadiene (BD) supply was mixed in the first quarter of 2019 because of disruption in supply from Europe, a major deep-sea supplier of BD to Asia. Europe exports BD regularly to Asia but sudden unplanned outages at BD plants in Europe disrupted the deep-sea supply to Asia. However, supply in Asia was abundant, with regional producers in southeast Asia having surplus spot material, given the weak downstream demand from the synthetic rubber makers.
Demand for butadiene (BD) in Asia was persistently weak in the first quarter of 2019 due to falling automotive sales in China, the world’s largest automotive market. Synthetic rubber, including styrene butadiene rubber and polybutadiene rubber are major feedstocks in the production of tyres for the automotive industry. In light of the slump in the Chinese automotive market, the downstream SBR and PBR makers, the major consumers of BD, were operating at lower rates, and thus curbing spot demand for BD.
European butadiene (BD) supply was balanced to long during the first quarter. Domestic consumers fulfilled their contractual obligations as part of their preparations for scheduled spring maintenances but export opportunities were fragile as demand in the key export market Asia stayed lacklustre and sluggish throughout. Planned and unplanned production events led to firmer spot prices and subsequently firmer contract prices too.
Domestic butadiene demand was steady to soft. Consumers had contracted for high volume in 2019 over concerns for supply during the spring and autumn scheduled maintenance slates but demand further down the chain was softer than expected. This was largely due to the uncertainties over the outcome of the US-China tariff dispute. Spot demand for export was reduced due to the pricing disparity between Europe and Asia.
US butadiene (BD) supply was sufficient to meet demand in the first quarter of 2019, following a tight position through much of 2018. Supply levels improved alongside increasing volumes of feedstock crude C4 (CC4). CC4 improved amid a slight shift in feedslates toward some heavier NGLs. This occurred as cracker operators saw improved economics with heavier NGLs such as propane and butane alongside the crude price drop and as operators sought to limit ethylene output amid oversupply.
There was no shortage of material, and buying interest was sluggish to start the year amid a seasonal slowdown. Asian markets remained soft during the quarter, keeping buying interest for US material low. The downstream styrene butadiene rubber (SBR) sector is sluggish on a global scale, however, amid an automotive and economic slowdown in China that has weighed on BD demand.
Whether you are buying or selling, our short-to-long term solutions – from pricing data, breaking news and market analysis, to supply and demand forecasts – will power your decision-making process by bringing clarity through data and ensuring you are able to evaluate the global butadiene market from every angle.
Key trading prices and activities – Spot, contract and domestic prices. Offers, bids and transactions of butadiene and crude/C4
Price alerts and market updates: Shifts in prices, the latest news, market developments and changes in regulations and demand trends
Plant data: Production and capacity, plant maintenance and shutdowns
Feedstock: Prices and market updates for naphtha
Historical prices: Download and/or chart pricing from as far back as the start of ICIS coverage
Weekly market outlook: Overview and outlook for the overall regional butadiene market, including a brief commentary on the related regional markets
Supply and demand: Analysis of domestic and international supply and demand
Regional coverage: Asia-Pacific, China, Europe and the US
Ensuring you gain a 360° view of the market, our pricing intelligence service is supplemented with analytical tools. Quickly access data such as:
ICIS News brings you breaking chemical news as they happen – including market moves, analysis, data and more. The service is reliable, authoritative and always available when you need it most.
Gain a long-term view of the market with ICIS Supply and Demand Data Service (1978-2040)
ICIS Supply and Demand Data Service offers end-to-end perspectives across the global butadiene supply chain. Gain quick access to data on import and export volumes, plant capacities, production updates, trade flows, companies and trade routes. With historical data from 1978 and forecast available up to 2040, this powerful data and analytics service from ICIS helps senior management, strategists, business planners, analysts and risk managers to:
Working closely with you to understand your strategies, challenges and ambitions, the consulting team at ICIS delivers tailored advice and solutions to suit your unique requirements. With many years’ experience of guiding business leadership teams, we show you how market conditions can have a positive or negative impact on your long-term plans.
How we can help:
Our Pricing Methodology: ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising of consumers, producers, traders and distributors from more than 250 reporters worldwide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.
Keen to know more about our methodologies and how we derive our price assessments? Click here.
Our benchmark prices have been trusted by buyers and sellers around the globe for nearly 40 years.
Choose ICIS for concise information and easy-to-assess formatting, all delivered straight to your inbox.
Butadiene is a colourless, non-corrosive liquefied gas with a mild aromatic or gasoline-like odour. It is slightly soluble in water, more soluble in methanol and ethanol, and soluble in most common organic solvents such as acetone, ether, benzene, and cyclohexane. It readily polymerises in the presence of sodium or oxygen.
Butadiene is used to produce synthetic rubbers and polymer resins, as well as a few chemical intermediates. The largest uses are styrene butadiene rubber (SBR) and polybutadiene rubber (BR), mostly used in tyres and automobiles.
The major source of butadiene is as a byproduct in the steam cracking of naphtha and gas oil to make ethylene and propylene. The butadiene is extracted from the C4 cracker stream using extractive distillation.
Other uses include acrylonitrile-butadiene-styrene (ABS) resins, styrene-butadiene latex and block copolymers, nitrile rubber, and adiponitrile (ADN)
LONDON (ICIS)--Polish fertilizers producer Anwil defended on Tuesday its move to expand its nitrogen capacity after fellow state-controlled Grupa Azoty warned that such capacity additions “may...Read
SINGAPORE (ICIS)--The paraxylene (PX) market in Asia is expected to see a surge in new supply in the second half of the year, as new capacities are due to come on stream. A female worker at a...Read
HOUSTON (ICIS)--A massive blackout in Argentina left the entire nation without electrical power on Sunday. The petrochemical industry was affected, although companies were recovering fast, sources...Read
LONDON (ICIS)--China has become the global epicentre for chemicals, with around 40% of the world's output. How will the China-financed infrastructure project the Belt and Road Initiative affect...Read
The ripple effects caused by increasingly ambiguous political and economic terrains are impacting every corner of the globe – but what does this mean for purchasing professionals working in the chemical industry? Don’t miss out on the opportunity to learn from professionals across the value chain and unveil what the major players are strategising during these highly turbulent times with our new and improved interactive agenda.
On 5 – 6 September the 12th ICIS World Chemical Purchasing Conference returns to Boston ready to discuss the key challenges facing the industry now. From geopolitical and macro impacts to trucking developments and challenges, no question will go unanswered. Discover how the supply/demand balance is shaping the industry for years to come as the US begins to reap the effects of its shale gas capacities and how you can get on top with first-class purchasing strategies.