BUTADIENE MARKET ANALYSIS

Global butadiene market growth can be hampered due to the fluctuations in crude oil prices over the past few years. Butadiene is a fundamental petrochemical that is derived from naphtha feedstock obtained during the oil refining process. Around 90% of the global butadiene supply is sourced from steam cracking of naphtha and gas oil. Therefore, any variations in crude oil prices have a substantial impact on the production cost and supply availability of butadiene. With crude oil prices experiencing volatility due to geopolitical tensions, natural disasters and pandemic situation, producers of butadiene have faced major challenges in maintaining a stable supply chain.  This volatility in the key raw material pricing has encouraged petrochemical companies to explore alternative butadiene production technologies that rely less on oil-based feedstock.

Opportunity: Emerging Economies in Asia Pacific

Emerging economies in the Asia Pacific region present a great opportunity for growth of global butadiene market. Countries like China, India, Indonesia and Vietnam are witnessing massive industrialization and infrastructure development, and this boosts demand for butadiene and downstream chemicals. Over the past decade, these nations have seen breakneck economic expansion with growth rates consistently higher than global averages. Rapid urbanization has led to the build-out of new cities, factories, highways and other construction projects.