2. What is it?
•Butadiene is a colourless gas at room
temperature and is extremely
hazardous due to its high flammability
and thus, difficult to store.
•Butadiene is most commonly used to
produce synthetic elastomers such as
styrenebutadiene and polybutadiene
rubber, which are used in the
production of car tires.
3. Manufacturing Process
• Butadiene is manufactured primarily as a
by-product of steam cracking ethylene
• Butadiene can also be made through several
different dehydration processes and ethanol
production processes
• For butadiene to be used commercially,
butene, butane, and acetylene impurities
must be extracted from the compound in a
purification process
4. Prices
• Due to heavy reliance on feed stocks, the price
of butadiene follows crude oil prices closely
• over 80% between their 2011 highs and 2013
levels, reflecting weak underlying demand and
increased supply from on purpose facilities
based on butene feed.
5. Main Producers
• The major butadiene producers include LyondellBasell,
INEOS, Texas Petrochemical (TPC) and Shell Chemica
• Asia remains the largest butadiene-producing region in
the world, with 51% of total capacity in 2012, due to its
reliance on heavy feedstocks in ethylene cracking.
• Significant capacity additions are planned to occur in
China by 2017. Elsewhere, BASF is planning a 155k
mtpa expansion in Antwerp in 2014 and TPC in the US
is committed to adding 270k mpta of capacity in 2016,
based on butane dehydrogenation.
6. Market Scenario
• The largest butadiene customers include
Goodyear Tyre and Rubber, Michelin, DuPont,
and Dow Chemical.
• The largest end use for butadiene is
elastomers
• The majority of elastomers are used in tyres
• Aside from elastomers, the remaining 40% of
butadiene use is in plastics and latexes