Published: October 08, 2009

Butadiene Demand in Asia Pacific Region will Overcome the 50% Share of Global Total by 2015

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LONDON - (BUSINESS WIRE) - At present, the Global Butadiene Market is changing its shape and will be driven not only by demand for rubber but also for high impact polystyrene (HIPS).

Markets in developed regions are mature, however, the fact is outweighed by the emergence of major automotive production in developing economies.

Butadiene production facilities are shifting to Asia and regions like central Europe, thus, away from the US, western Europe and Japan. The North American market has weakened since the downstream demand in the auto, tyre replacement and electronics industries has moved to Asia.

Most butadiene goes into SBR and butadiene rubber (BR), but the situation is worsen by the lack of demand from the auto makers and weakened demand for replacement tyres from vehicle owners.

Butadiene is also used to make the engineering plastic ABS (acrylonitrile butadiene styrene), yet ABS market has been influenced globally by weakened automobile demand and lower demand from the electronics industries.

Butadiene supply globally was extremely tight in the first three quarters of 2008, as higher naphtha costs drove ethylene makers to switch to cracking gas feedstocks and limiting supply. The market tightness, however, disappeared as demand collapsed in the 4Q.

Butadiene future looks perspective with major growth concentrated in Asia where demand will grow to 53% of the global total in 2015 from 45% in 2008. Rapid growth is forecast for the Middle East as new butadiene derivatives production capacities are added.

More detailed overview of Butadiene market can be found in the report 'Butadiene Market Outlook 2009' recently released by Merchant Research and Consulting:

Butadiene Market Outlook 2009

http://mcgroup.co.uk/researches/B/10/Butadiene%20Market%20Outlook.html
Updated: 09/2009 / 135 Pages

The report is a part of Petrochemicals Report Bundle encompassing the two ones:
Petrochemicals (Olefins) Reports Package 2009 and Petrochemicals (Aromatics) Reports Package 2009

Merchant Research & Consulting LTD
David Sakolski,
Tel: +44 207 558 8740
Fax: +44 207 900 3970
info@mcgroup.co.uk
www.mcgroup.co.uk