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
Asia
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.
Europe
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
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
Asia-Pacific
Europe
US Gulf
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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)
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