U.S. butadiene prices rebounded early next year

According to Michael McDonald, chief executive of TPC Group, a US butadiene producer, butadiene prices in the United States may rebound in early 2012 after a sharp decline since the third quarter.

Many TPC customers are currently optimistic about the outlook for 2012. As the demand is expected to increase, the two tire manufacturers have plans to build new projects on a large scale or to expand. In addition, there are five planned ethylene overhauls in the first and second quarters of 2012 in the United States, which will create a temporary shortage of supply, which will provide impetus for the rise in butadiene prices.

In Europe, the reduction in the operating rate of ethylene crackers has begun to affect the supply of butadiene and has played a role in stabilizing spot prices. At present, the average operating rate of ethylene crackers in Europe is only 70% to 75%.

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