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Special Report: Developing Fortunes of the C4s Market
Report Overview
A severe tightness in global butadiene markets has
drawn considerable attention to the C4 value chain and its
prospects for future development. Structural changes in
global olefins feedstock selection, supply, and production
have resulted in both shortages and unpredictability in
mixed C4 supply. Several factors have contributed to
unprecedented highs in recent C4 values. These include
the following:

A trend towards lighter feedstock cracking promoted

primarily by advantaged feedstock pricing and
availability in the Middle East and more recently in
the U.S. market, influenced by the impact of shale
gas.
Increased production of ethylene and propylene from
non-conventional technologies such as CTO, PDH,
metathesis and biomass.

Despite the current malaise of the global economy the

automotive sector continues to exhibit modest trend
line growth. This is largely the result of increasing
consumption from emerging markets such as Asia,
spurred principally by China and India, and Latin
America. Demand fundamentals for synthetic rubbers,
and C4 intermediates such as butadiene and butylenes,
continue to exhibit consistent demand growth which is
more than off-setting maturity seen in other markets.
Future prospects of growth will remain tied to economic
prosperity as well as changes in technology that may
result from the tire sector.

Emerging trends in the global automotive sector and tyre

markets/technologies.

Sector market dynamics and pricing for butadiene,

butylenes and major derivatives.

Nexants study provides a detailed analysis of industry supply

on a cracker by cracker basis, including history and forecast
data covering the period 2000-2020.
Market dynamics are presented on a region by region basis with
additional detailed focus on key countries including China and
India.
The resulting impact of changing industry dynamics on C4
pricing and profitability are outlined along with discussions
around the key implications to the C4 sector.
For further information or to purchase the Developing
Fortunes of the C4s Market report, please contact STMC@
nexant.com.

Nexants multi-client study, Developing Fortunes of

the C4s Market, examined the current and developing
fortunes of the C4 market, and focused on the following
key aspects of the sector:

Evolving feedstock slate and capacity developments

for regional ethylene production and resulting C4
availability.

Refinery integration and C4 supply potential.

Alternative routes to butadiene and production

competitiveness such as dehydrogenation and
bio-based technologies.

NexantThinking Programs provide subscribers and users with comprehensive analytics,

forecasts and insights for the energy, chemicals, polymers and clean tech industries
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