The organic compound butadiene, or 1,3-Butadiene (although they will be used synonymously henceforth), is a conjugated, unsaturated hydrocarbon derived of two double bonds between carbon atoms. It is an integral facet of the industrial chemical industry used in the production of many forms of synthetic rubber, and the globally expanding automobile market has seen its use expand in regions such as Asia-Pacific.
Butadiene is created as by-product in the chemical production of ethylene, a flammable hydrocarbon gas, and propylene, a gaseous alkaline hydrocarbon, substances traditionally acquired through the cracking of naphtha followed by extractive distillation. Naphtha, a general term referring to flammable hydrocarbon-containing oil, is used as a solvent and hence a key ingredient in the production of plastic materials. Butadiene, on the other hand, is largely consumed by the synthetic rubber industry, with its range of deriviatives subsumed across the car manufacturing sector due to its versatility of use with various components. It is this growing global industry which predicts the drive of the butadiene market over the next five years.Butadiene Market
The flammable, colourless, highly reactive yet mildly aromatic gas of the butadiene form is soluble in ether and alcohol, yet insoluble in water. A key ingredient for the synthetic rubber industry, tyre production is one such segment where the butadiene market is likely to experience growth over the coming few years. Synthetic rubber itself is made from raw materials which are themselves derived from a variety of sources, including coal, oil, natural gas, petroleum and acetylene. Styrene Butadiene Rubber (SBR) is the most commonly used elastomer in tyre production due to its low cost and desirable properties. Other copolymers derived from butadiene and acrylonitrile, known as nitrile elastomers, are regarded as being sufficiently oil-resisntant. As such, they have found use in verticals such as the creation of flexible couplings, water hoses, and consumer white goods such as washing machine parts.
The market for butadiene in the use of synthetic rubber manufacturing is booming, and is nowhere more resonant than in Asia-Pacific.
In the past week, Michelin-owned Synthetic Rubber Indonesia (SRI) granted contracts to Inti Karya Persada Tehnik (IKPT) and Toyo Engineering to develop a $435Mn (USD) synthetic rubber plant in the city of Java, Indonesia. The plant, whose tyres produced will be procured by Michelin, will have a manufacturing capacity of 120,000 tonnes per annum. Michelin – whose solution styrene butadiene rubber (SSBR) will be manufactured within the plant – have pledged a 55% stake in the venture, whilst the remaining 45% share goes to Styrindo Mono Indonesia. IKPT will be responsible for the engineering, procurement and construction side of the new venture; Toyo Engineering are set to co-ordinate the off-shore supply activities.
The plant is expected to reach completion by 2018. – Companiesandmarkets.com