As demand for synthetic rubber grows has grown so has the demand for butadiene, an essential chemical used as a monomer in the production of styrene-butadiene rubber (SBR), poly-butadiene rubber (PBR) and acrylonitrile-butadiene-styrene (ABS). At this present time, the price of butadiene is reaching historical highs and has been likened to gold according to Rafael Cayuela, Commercial Director of Styron’s Butadiene business, speaking during his presentation at the World Rubber Summit 2012 in Singapore, recently.
In the past twelve months, the price for butadiene has ranged between approximate US$2,144 per tonne and US$5,083 per tonne, with current prices at approximately US$4,765 per tonne. One of the principal underlying factors is the restriction in the supply of butadiene relative to demand. Supply is mainly from the steam cracking of naphtha and gas oil, with a small portion coming from butane dehydrogenation. Cayuela adds that aside from lighter feeds, logistics and storage constraints, it was market inefficiencies that fostered this unprecedented growth.
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