Press Release

Europe and Middle East Butadiene Market Expected to Record a CAGR of 2.3% During the Forecast Period


November 1st, 2012

Global Information Inc. would like to present a new market research report, "Butadiene Europe and Middle East Market to 2020 - North American Supply Shortages to Drive European Exports" by GBI Research.

Europe and the Middle Easts demand for butadiene has been steadily increasing over the last 10 years. In 2000, Europe and the Middle Easts butadiene demand stood at 2,037,749 tons, before increasing to 2,575,670 tons in 2011. A significant proportion of the demand for butadiene was from the European region, and the same trend is expected to continue in the forecast period. The European region will continue to account for more than 90% of Europe and the Middle Easts butadiene demand in 2020. Europe and the Middle Easts demand for butadiene is expected to grow at a CAGR of 4.9% between 2011 and 2020, to reach 3,173,838 tons in 2020.

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Western Europe Leads the Europe and Middle East Butadiene Demand

The demand for butadiene in Europe and the Middle East region was primarily led by the countries from Western Europe. Demand in advanced countries such as Germany and France was the main reason for the higher share of demand from Western Europe. However, the large populations and growing economies of countries like Russia and other nations of Eastern Europe means that they have huge consumption potential. This is reflected in the high growth from butadiene downstream segments such as Styrene Butadiene Rubber (SBR), polybutadiene and Acrylonitrile Butadiene Styrene (ABS) sectors in these countries. Similarly, new downstream plants are going to come online in Iran and Saudi Arabia in the near future. Because of this, the proportion of butadiene demand from Western Europe is expected to reduce in the forecast period.

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SBR, Polybutadiene and Adiponitrile Led the Demand for Butadiene from End-use Segments in 2011

Butadiene is largely used in the production of Styrene Butadiene Rubber (SBR), which is used to manufacture automobile tires. SBR is also used in manufacturing adhesives, sealants, coatings and other rubber articles such as shoe soles. Butadiene is also used in making Butadiene Rubber (BR), and is polymerized to polybutadiene rubber.

The styrene butadiene rubber, polybutadiene and adiponitrile sectors were the leading end-use segments for butadiene in 2011, with 603,535 tons, 572,975 tons and 193,671 tons of demand, respectively. Together they accounted for around 50% of Europe and Middle East butadiene demand. The acrylonitrile butadiene styrene (ABS) and other end-use sectors accounted for the remainder of Europe and Middle East end-use demand for butadiene in 2011. A similar trend for end-uses of butadiene is expected to continue throughout the forecast period to 2020.

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Europes Butadiene Exports will Grow Due to Strong Demand from the US

The US is increasingly becoming a strong market for European butadiene exports; as the US starts to increase its use of shale gas as a feedstock, instead of crude oil, there is an increasing shortage of butadiene in the market. As a result, the local butadiene consumers such as SBR, polybutadiene and ABS producers are increasingly importing the required butadiene, and this can benefit European producers. The European butadiene market has not been experiencing very healthy growth, and the demand from the downstream end-use segments is also not showing huge potential. Therefore, the increased butadiene demand from the US consumers presents a readily available market for European producers. This trend is expected to continue in the near future, as the Asia-Pacific region is also a predominant importer of butadiene. As the situation stands currently, the European butadiene producers are going to be a major source of supply to North America in future.


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