Butadiene : the color of weak demand is difficult

As a former darling of butadiene chemical market suffered cold in 2013 , the market price fell below the cost price. Although the market has warmed up, but this is not glory . Production capacity in the country continue to release , the influx of foreign products and the need not to force the other negative factors , the 2014 days of butadiene is not too good .
Throughout the performance of butadiene in 2013 , only use words to describe surprise .
In the beginning , butadiene standing 15,000 yuan ( t price , the same below ) mark , after market volatility declined in July ex-factory price fall 7000 yuan , compared with the beginning and has been cut below the cost price. Under the subsequent sharp rebound in the outer disk , the downstream device performance Northeast parking , styrene , etc. have been properly take joint action , butadiene and finally out of the quagmire . In September and October on the occasion, the market price once leapt to 12,000 yuan . Then Fushun Petrochemical , Tianjin and Shandong Wanda Chemical Bluestar production, supply form the face of market pressure , while downstream demand season is over , turn down the market price of butadiene , currently top the million mark.
Oversupply situation has been fixed
Butadiene was the star product , the price high demand, attracted attention of many investors , the domestic production capacity rising, the influx of imported goods , starting in 2012 from a seller into a buyer’s market . Butadiene is no longer tight.
Currently, there are two main sources of butadiene , an extract derived from a mix of carbon byproduct ethylene cracker four fractions , low price of this method , the dominant economy. 2012 , butene oxidative dehydrogenation of butadiene into the spotlight . Since the device has a high price and do not impose excise tax advantages , has been sought after by many companies . 2013 launched Wuhan Petrochemical , Sichuan Petrochemical , Shanghai Secco and ethylene cracker FREP or expansion, bringing the total production capacity of ethylene cracking byproduct of nearly 400,000 tons of butadiene . Shandong , east and central regions have oxidative dehydrogenation of butene butadiene plant investment and construction plans , the total production capacity has reached 700,000 tons / year.
2013 butadiene production capacity of around 3.9 million tons / year, while demand is less than 3.1 million tons , the oversupply situation highlights . With 2014 Qingdaojianye 100,000 tons / year, production Orient Hongye 100,000 tons / year, Liao宁胜友100,000 tons / year butadiene plant , etc. , the market or the formation of new pressures.
Internationally, the company plans to invest in Indonesia money delaasili $ 1.1 billion to build an annual output of 100,000 tons / year butadiene plant , Thailand, PTT Global Chemical is also building a 75,000 t / year butadiene plant , Singapore Petrochemical
The company also carried out a 100,000 tons / year of butadiene construction projects. In addition, Siam Cement Group , Thailand , Vietnam National Oil and Qatar Petroleum International Company plans to build a large stone Longshan Island in southern Vietnam
Of the plant, as well as Thai PTT Global Chemical Company to negotiate with the Indonesian PT Pertamina ‘s $ 5 billion investment in the construction of oil refinery plants, both butadiene products on the market . Thus in 2014 the Asian butadiene market downturn or pattern will continue in 2013 .
Imported products compete for market
And domestic enterprises dismal day as a result of weak demand , foreign butadiene manufacturers also carry something . Total yinli, China Taiwan more than 30 million tons / year of new capacity release the pressure on the market should not be overlooked . It is foreseeable that in the new year , the Asian butadiene manufacturers, will continue to set our sights on the Chinese market.
Data show that as of October 2013 , China imported 294,370 butadiene
Tons , increased by 27.31% over the previous year . In the case of the demand downturn , there are still nearly 300,000 tons of product into the domestic market to compete , accounting for about 10% of total demand . It is because of the huge potential of the Chinese market , many foreign
Manufacturers look to invest in China directly to an expected 2014 competition will be more intense .
The domestic manufacturers forced selling pressure , also looking for foreign tourists . However, as of October 2013 , China exported 37,770 tons of butadiene , the year 2012 is only exported 39,450 tons , with production capacity of 3.9 million tons compared to only be considered inadequate. With the continuous release of butadiene production capacity , will make 2014 an oversupply of butadiene continued fierce competition in the market .
Downstream demand continues to slump
About 33% for butadiene styrene butadiene rubber and styrene-butadiene latex , about 25% for polybutadiene rubber , about 22% for areas such as synthetic resin . SBR synthetic
Rubber largest types of plastic , as have launched new projects, the oversupply of signs have emerged. This can be verified from the 2013 market . SBR market since the second quarter of 2012 continued to decline in 2013 prices have dropped nearly 7,000 yuan / ton , fell two and a half low. Since then , although bottoming out, but no big improvement .

SBR manufacturers started in 2013 from 90 % at the beginning of the gradual decline after May has been hovering near 50 percent . Very limited production factory city , which makes the SBR prices bottomed out . SBR next two years will increase annual production capacity of 1.17 million tons , overcapacity and market competition will continue to intensify.
About chemical market there is an important factor is the macroeconomic situation . According to economists predict that China’s economy is still in an adjustment period, will not form a new upward trend , cyclical , periodic adjustments not yet in place.
The following summary, capacity release , imported products strife , and other negative effects sluggish downstream demand , 2014 will continue butadiene market or weak market, difficult color performance .(chemicals supply)