H1 2023: The key manufacturers of Butadiene in H1 2023 were TPC Group, Shell Chemicals, Lyondell Basell, and Formosa Plastics Corporation. Based on production capacity, TPC Group was in the leading position in the global Butadiene market. In June 2023, Tecnimont and Tecnimont Arabia Limited, two subsidiaries of Maire Tecnimont S.p.A., were awarded two EPC contracts in connection with a petrochemical expansion at the SATORP Refinery in Jubail, Kingdom of Saudi Arabia. Internally generated refinery off-gases, naphtha, ethane, and natural petrol will all be converted into higher-value chemicals as part of the project. The contract holds a value of almost USD 2 billion. Two packages of the complex are covered by the contracts, especially the "Derivatives Units" package, which includes extraction units for butadiene, olefins, methyl tert-butyl ether, butadiene selective hydrogenation, 2nd stage pygas hydrogenation, benzene and toluene extraction unit. However, Asia Pacific region was the largest consumer of Butadiene in H1 2023. In the first three months of 2023, China witnessed bullish market sentiment. After the Lunar New Year holidays, market participants refilled the stock in the market and the Chinese butadiene prices rose. There was a steady demand for butadiene from the downstream polymer and synthetic rubber industries in the Asian market. In response to heavy consumption by the downstream industries, butadiene manufacturers’ operating rates increased in the Asian market. However, from April 2023, butadiene prices fell down the slope in the Asian market. This was backed by the cheap prices of feedstock and low enquiries in the Asia Pacific region.
The global Butadiene market has reached approximately 12 million tonnes in 2022 and is expected to grow at a CAGR of 4.79% during the forecast period until 2035. A contract for the construction of Egypt's Tahrir Petrochemical Complex for US $7.5 billion has been finalized. The Red Sea National Refining and Petrochemicals Company and General Authority signed this contract for Suez Canal Economic Zone. The project will be constructed on 3.56 million square meters of land in the industrial district of Ain Sokhna, close to the Gulf of Suez, Egypt. This plant is expected to have a capacity of producing multiple chemicals including 250,000 tonnes of Butadiene annually.
Butadiene or 1,3-butadiene is a colorless gas that smells like gasoline. It can be produced by dehydrogenation of butanes or by cracking of petroleum derivates likes it distillates at high temperature. In presence of a catalyst, Butadiene turns into a stretchy elastic which displays properties like rubber. Butadiene is primarily used for the synthesis of rubbers and plastics that includes Styrene Butadiene Rubber, Poly Butadiene Rubber and Acrylonitrile Butadiene Styrene. It shows excellent properties such as elasticity and insulation to heat and electricity. Butadiene has various industrial applications such as rubber insulators, inner tubes, golf balls, industrial components, conveyer belts, automobile tires, shoes soles, and others.
The primary driver of Butadiene global market is for the synthesis of rubbers and plastics which are further utilized for the manufacture of general use commodities. In 2022, approximately 55% of global Butadiene was utilized by the Styrene Butadiene Rubber (SBR) Industry. Since butadiene is a key raw material used to make synthetic rubber, demand for tires, footwear, and consumer goods is driving up butadiene production and consumption. SBR is used for a variety of industrial purposes, including as wire insulation and cabling, belting, hoses, gaskets, and seals that are resistant to abrasion and metal bonding. Commercial applications for SBR polymer include everything from shoe soles, carpet backing, and molded products. Furthermore, Butadiene can be added to other plastics to improve their elasticity. The global Butadiene market is expected to reach 22 million tonnes by the forecast period.
Based on demand, the Asia Pacific is dominating the Butadiene market with a market share of approximately 55% million thousand tonnes in 2022. The main driving factor is Styrene Butadiene Rubber (SBR), which is made from butadiene and blended with rubber to make tires. The demand of personal use vehicles and commercial vehicles is anticipated to drive the Butadiene market in the forecast period. Furthermore, Asia Pacific is leading as the producer in the Asia Pacific region.
Based on the end-user industry, the global Butadiene market is segmented into different industrial sectors that include Styrene Butadiene Rubber, Poly Butadiene Rubber, Acrylonitrile Butadiene Styrene, and others. The Styrene Butadiene Rubber industry is the dominating the Butadiene. Poly Butadiene Rubber and Acrylonitrile Butadiene Styrene are also contributing to the growing demand of Butadiene in the forecast period.
Major players in the production of Global Butadiene are TPC Group, Petrochina, Haldia Peterochemicals Limited, Lyondell Basell, Formosa Plastics Corporation, Shell Chemicals, Braskem1, Sabina Petrochemical, Ineos, Evonik Industries AG, ExxonMobil Corporation, Dow Chemical, Versalis.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2035
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Objective of the Study:
• To assess the demand-supply scenario of Butadiene which covers production, demand and supply of Butadiene market in the globe.
• To analyse and forecast the market size of Butadiene
• To classify and forecast Global Butadiene market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Butadiene market in the globe.
To extract data for Global Butadiene market, primary research surveys were conducted with Butadiene manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Global Butadiene market over the coming years.
ChemAnalyst calculated Butadiene demand in the globe by analyzing the historical data and demand forecast which was carried out considering the historical extraction and supply and demand of Butadiene across the globe. ChemAnalyst sourced these values from industry experts, and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Butadiene manufacturers and other stakeholders
• Organizations, forums and alliances related to Butadiene distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Butadiene s manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Global Butadiene s market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2022
12 million tonnes
Market size Volume by 2035
22 million tonnes
Growth Rate
CAGR of 4.79% from 2023 to 2035
Base year for estimation
2023
Historic Data
2015 – 2022
Forecast period
2024 – 2035
Quantitative units
Demand in million tonnes and CAGR from 2023 to 2035
Report coverage
Industry Market Size, Capacity By Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share, Foreign Trade, Manufacturing Process, Policy and Regulatory Landscape,
Segments covered
By End-Use: (Styrene Butadiene Rubber, Poly Butadiene Rubber, Acrylonitrile Butadiene Styrene, and others)
By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope
North America, Europe, Asia Pacific, Middle East and Africa, and South America.
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What was the global market size of Butadiene in terms of volume for 2022?
Ans:
The global market size of Butadiene was approximately 12 million tonnes by 2022, and it is expected to expand at a CAGR of 4.79% in the forecast period by 2035.
Q2.
What are the major end-use industries of Butadiene?
Ans:
Butadiene is used in a wide range of end use industries including Styrene Butadiene Rubber, Poly Butadiene Rubber, Acrylonitrile Butadiene Styrene, and others.
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