Butadiene Pricing Report

Butadiene Prices December 2023

The fourth quarter of 2023 saw a sharp rise in butadiene pricing in the USA as a result of cost support from feedstock butane. The cost of butadiene increased due to the higher-than-average input energy prices. Thus, the prices were settled at 691 USD/MT during December 2023.

The fourth quarter of 2023 had a varied trajectory for butadiene prices in South Korea. Prices rose at the start and middle of the quarter as a result of a drop in inventory. Because feedstock naphtha prices were declining towards the end of Q4, butadiene prices fell substantially. As a result, the prices for butadiene were 900 USD/MT in South Korea.

The German market saw a strengthening of butadiene prices in the last quarter as a result of a decrease in product supply. Amidst continued scheduled and unforeseen disruptions at European steam crackers, the fourth quarter saw weak markets for crude C4. It caused a scarcity of supplies for the home market. Furthermore, the latest quarter-ending price for butadiene in Germany was 768 USD/MT.

Butadiene Price Trend, Market Analysis, and News

IMARC’s newly published report, titled Butadiene Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data, offers an in-depth analysis of butadiene pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot prices at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of price trends across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing butadiene price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Butadiene Market Analysis

The global butadiene market size reached 13.1 Million Tons in 2023. By 2032, IMARC Group expects the market to reach 19 Million Tons, at a projected CAGR of 4.30% during 2023-2032.

• Butadiene demand is inflating across the world due to its important role in the manufacturing of synthetic rubbers like styrene-butadiene rubber (SBR) and polybutadiene rubber, which are used in tire production. According to an estimate, around 40% of the butadiene produced worldwide goes into manufacturing tires. Given that the market for tires is anticipated to grow by 4.9% annually, reaching US$ 256.8 billion by 2032, the demand for feedstock chemicals like butadiene is expected to surge. Also, the automotive industry is experiencing a strong upward trend. In 2022, 85.4 million motor vehicles were produced globally, a 5.7% increase from the previous year.
• Beyond this, the application for butadiene is expanding due to its role in the synthesis of acrylonitrile butadiene styrene (ABS). It is a thermoplastic polymer used in the fabrication of building materials, toys, and vehicle components. In 2022, the total global trade of ABS was $7.69 billion. Also, the construction sector is expanding rapidly, resulting in a heightened demand for building materials. For instance, in India, the construction sector is projected to reach $ 1.4 trillion by 2025.
• The market share is being further reinforced by the increased demand for butadiene in the production of latex. It is a versatile material that finds applications in paper coating to improve smoothness, brightness, and printing properties. According to recent estimates, the world produces 300 million tons of paper every year. Also, the consumption of paper in the last 40 years has risen as much as 400%.
• Additionally, the footwear industry is embracing butadiene due to its role in the production of soles and other components. The market for footwear is expected to be USD 332.3 billion by 2032, growing at a rate of 3.4% annually.

Butadiene News

The report covers the latest developments, updates, and trends impacting the global butadiene market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in butadiene production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that shape the industry landscape.

Latest developments in the butadiene industry:

• In September 2021, CHIMEI and Braskem completed the world’s first shipment of butadiene with carbon offsets. The credits were sourced from a REDD+ project, which is estimated to lower carbon emissions by over 130 million metric tons in total.
• In January 2024, Axens, Michelin, and IFPEN inaugurated the first industrial-scale demonstrator of a plant producing bio-based butadiene in Bassens near Bordeaux, France. It has a production capacity of between 20 and 30 metric tons per year.

Product Description

Butadiene (C4H6), often referred to as 1,3-butadiene, is a colorless gas with an aromatic odor. Its vapors are heavier than air and can be easily ignited. The physical properties of butadiene include molecular weight (54.09 g/mol), vapor density (1.87), boiling point (24.1 °F at 760 mmHg), melting point (-164 °F), and flash point (-105 °F). It is slightly soluble in methanol, ethanol, and organic solvents, such as carbon tetrachloride (CCl4).

Butadiene is manufactured as a coproduct of steam cracking to produce ethylene. It is also produced by the dehydrogenation of n-butane and oxydehydrogenation of n-butenes. Butadiene is used in synthetic rubber, tires, plastics, high-impact polystyrene (HIPS), latex, adhesives, sealants, footwear, and plastic modifications.

Regional Coverage

The report provides a detailed analysis of the butadiene market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the price trends. 

Global Butadiene Price

The report offers a holistic view of the global butadiene pricing trends, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level.

Europe Butadiene Price

The European market for butadiene saw a strong trend during the fourth quarter of 2023. The production of butadiene remained offline for planned maintenance, which resulted in the supply shortage in the regional market. Also, the import from the Asian market became more expensive, further exerting upward pressure on butadiene prices.

This analysis can be extended to include detailed butadiene price information for a comprehensive list of countries.

North America Butadiene Price

The North American market for butadiene saw a drastic increase in prices during the final quarter of 2023. It was influenced by the higher prices of feedstock butane and input energy, which elevated the production cost of butadiene. The manufacturing sector was also sluggish, which caused a limited supply of butadiene to cater to downstream demand.

Specific data on butadiene prices within the United States and Canada can also be provided.

Middle East and Africa Butadiene Price

The report explores the butadiene pricing trends in the Middle East and Africa, considering factors like regional industrial growth, the availability of natural resources, and geopolitical tensions that uniquely influence market prices.

In addition to region-wise data, information on butadiene prices for countries can also be provided.

Asia Pacific Butadiene Price

The prices for butadiene in the Asia Pacific region witnessed mixed sentiments in Q4FY2023. At the beginning of the quarter, prices increased rapidly, following a decline in inventory levels. Later, the demand for butadiene from synthetic rubber and polymer industry declined. It caused the prices to plummet in the regional market.

This analysis can be further extended to include detailed butadiene prices for a comprehensive list of countries within the region.

Latin America Butadiene Price

The analysis of butadiene prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

This comprehensive review can be extended to include specific countries within the region.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of butadiene pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting butadiene price volatility, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights, ensuring they remain at the forefront of the butadiene industry.