10 Jan 2025
Argus report assesses impact of steady demand and reduced cracker capacity in the region
London - European butadiene (BD) supply is expected to tighten in 2025 amid scheduled cracker closures and solid demand, according to analysts at Argus Media.
Citing feedback gleaned from participants, an Argus report said market sentiment on consumer demand was “cautiously optimistic” for the early part of 2025 at least.
As well as “strong” European domestic demand, BD supply could also be impacted by ongoing structural changes in the region’s chemicals sector, suggests the analysis issued 30 Dec 2024.
Closures of two steam crackers in 2024 - in France and The Netherlands - along with planned shutdowns of two crackers in Italy will reduce regional supply of crude C4 feedstock, it noted.
The European market could see additional restructuring this year, with "at least one producer weighing a review of its asset portfolio," continued Argus.
BD producers in the region are concerned about price volatility for natural gas, citing weaker margins, according to the London-based market-watcher.
“Higher natural gas prices are partially due to continued complications in gas transport and supply and to accelerated storage withdrawals,” added the report.
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