Renewed fighting between US and Iran has slowed shipping through the Gulf of Hormuz, disrupting supply routes. Benchmark crude prices have climbed sharply from pre-conflict levels, reflecting heightened geopolitical risk. The upward price pressure is likely to continue while tensions persist.
Intensified US-Iran military actions disrupt oil shipments through the Strait of Hormuz, causing a sharp spike in crude oil prices. The price jump leads to severe depreciation of the Indian rupee, raising import costs and inflationary concerns.
Asia
In the fourth quarter of 2024, Asian Butadiene markets, particularly in China, showed significant volatility. The quarter began with stable prices in October, supported by strong automotive sector performance and steady downstream demand. However, prices took a downward turn in November as market sentiment weakened and downstream buyers adopted a wait-and-see approach.
By late December, the market witnessed a notable price rebound due to tightening supply conditions and improved market sentiment. The Chinese market particularly experienced supply constraints at port inventories, which contributed to the price surge in the latter part of December. Southeast Asian markets largely followed the Chinese price trends throughout the quarter.
Europe
European Butadiene markets maintained relatively stable pricing through most of Q4’24. The market was primarily influenced by balanced supply-demand dynamics and steady automotive sector performance. However, energy costs and feedstock naphtha prices played crucial roles in determining production costs and market prices. The region experienced moderate demand from the tire manufacturing sector, while construction industry consumption remained stable despite seasonal slowdowns. The market saw some pressure from imported volumes, but this was offset by scheduled maintenance at key production facilities.
North America
The North American Butadiene market demonstrated resilience in Q4’24, with prices following a gradually ascending trend. The quarter was characterized by healthy demand from the automotive sector, particularly driven by electric vehicle production growth. Supply remained adequate despite some logistical challenges. The market benefited from strong domestic tire production and sustained demand from the construction sector. However, market participants remained cautious due to the approaching presidential election and its potential impact on trade policies.
Analyst Insight
According to Procurement Resource, the global Butadiene market is expected to maintain its upward momentum, primarily driven by supply tightness and recovering downstream demand. However, geopolitical uncertainties and potential economic headwinds could introduce volatility in the market dynamics.
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Asia
The prices for 1,3-butadiene exhibited an oscillating trajectory in the Asian domestic market during the discussed period. Initially, the prices kept low and kept on decreasing gradually. Although the supply situation was stable, the terminal demand was bearish. Moreover, the high freight charges did contribute towards the high upstream costs, but the suppliers could not pass these costs to the consumers owing to the negative market sentiment.
However, the prices registered a rebound towards the end of August and September first week given the unrelenting geopolitical fluctuations in the market. Therein, the prices started inclining gradually as the downstream demand from the polymer industry turned positive which led to active hoarding of the products by the suppliers.
Europe
Butadiene prices in Europe trended downward throughout Q3 2024, primarily due to sluggish demand and easing upstream costs. The market saw reduced buying interest, particularly from the automotive and construction sectors. Despite high freight rates providing some cost support, sellers struggled to raise prices amid weakening supply-demand dynamics. However, the prices made a slight recovery towards the end of quarter as supply tightened and seasonal demand improved.
North America
The North American 1,3-butadiene market experienced fluctuating prices in Q3 2024. Initial price decreases were observed due to lackluster demand and falling feedstock costs. However, prices rebounded slightly mid-quarter, driven by supply constraints and improved downstream polymer industry demand. As Q3 progressed, geopolitical tensions and logistics challenges contributed to price volatility.
1,3-Butadiene is a volatile and colourless gas with a petrol-like odour. It is immiscible with water but is readily soluble in organic solvents like acetone, benzene, etc. It serves as feedstock for various polymerization reactions but is primarily used in manufacturing synthetic rubber ranging from shoe soles to tires in the automotive industry.
C2H6
Synthetic Rubber, Adhesives, Sealants, Asphalt, Polymers, Plastics including acrylics
Biethylene, Divinyl, Vinyl ethylene
Sinopec, Braskem, Shell Chemical,, CNPC, BASF, LyondellBasell, Ineos OandP
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
C4 hydrocarbon production method: Mostly, 1,3-Butadiene is obtained during the stream cracking ethylene process as one of the by-products. The crude C4 stream is fed into the butadiene extraction zone, where the desired product is extracted via extractive distillation. The amount of product depends on the quality and quantity of feed used. Higher feed like naphtha results in a higher concentration of butadiene plus other derivatives.
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This report presents a detailed cost analysis of butadiene production from Ethanol.
This report presents a detailed cost analysis of butadiene production from aliphatic hydrocarbons using the steam cracking process.
This report presents a detailed cost analysis of butadiene rubber production from 1,3-butadiene via Ziegler-Natta polymerisation.
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