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Auto market to drive global butadiene demand to cross 13 MMT by 2020

Recovery of the auto sector is expected to create higher tyres demand, which in turn is likely to drive the synthetic rubber and butadiene market through 2020, says a TechSci Research report

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Auto market to drive global butadiene demand to cross 13 MMT by 2020

With the recovery of automotive industry, the global demand for butadiene is expected to cross 13 million metric tonnes (MMT) in volume terms by 2020, according to a TechSci Research report, ‘Global butadiene market forecast & opportunities 2020’.
 
Butadiene is an organic compound used in production of synthetic rubber, which being a substitute for natural rubber, is further used in manufacturing tyres and other components. Butadiene is obtained as a by-product during the production of ethylene and propylene by two different types of processes - dehydrogenation and steam cracking. The yield of butadiene is directly related to feedstock, ie heavier the feedstock, higher would be the butadiene yield. LyondellBasell, Royal Dutch Shell, TPC Corporation and BASF are some of the leading global players involved in the production of butadiene.

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The report reveals that majority of butadiene is processed for manufacturing derivatives that are categorised as synthetic rubber. Wherein, polybutadiene rubber (PBR) and styrene butadiene rubber (SBR) dominate the quantity of butadiene processed and they are followed by ABS resins, SB latex and adiponitrile.
 
Butadienes are used primarily for manufacturing tyre and automotive components followed by carpets, paper coats, etc. Recovery of the automobile sector is expected to create higher demand for tyres which in turn is likely to drive the synthetic rubber, and consequently, butadiene market through 2020. Along with increasing stringency of legislations to reduce carbon emissions from vehicles and improving the performance of tyres, the automotive industry is graduating from SBR to PBR.

 
“Developing economies in Asia-Pacific are expected to witness increasing production across various downstream sectors, owing to which, the region would continue to dominate the global butadiene market through 2020. Asia-Pacific is followed by North America, wherein US is the major contributor, followed by Canada and Mexico. Due to the increasing availability of ethane in the US, the percentage yield of butadiene is getting hampered. Hence, the butadiene derivative producers are increasingly relying on butadiene imports from Europe and Asia-Pacific, a trend that is expected to continue through 2020,” said Karan Chechi, research director, TechSci Research, a research based global management consulting firm.

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First Published: Jul 29 2015 | 1:57 PM IST

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