Demand for 1 Butene Market to Soar in the Coming Years in Top Regional Markets

1-Butene, an organic chemical belonging to the family of alpha olefins, is a colourless combustible gas. There are various methods of production of 1-Butene, such as from refinery crude stream of C4 hydrocarbons and natural gas, dehydrogenation of butane and dimerization of ethylene, which is stored and transported as compressed liquefied gas.

It finds major applications as co-monomer in manufacture of high density poly-ethylene (HDPE), linear low density poly-ethylene (LLDPE), which are used for food and non-food packaging such as bags and stretch wraps, toys, containers, pipes, etc., in production of polyethylene/ polypropylene resins having properties such as flexibility as well as high tear strength.

1-Butene is also used to produce valeraldehyde, polybutene, butadiene, butylene oxide, maleic anhydride, Secondary Butyl Alcohol (SBA). In addition to this, 1-Butene finds application as an intermediate for manufacturing of plasticizers, antioxidants, corrosion inhibitors, herbicides and as additives used in hydraulic and lubricating oils.

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1-Butene Market: Dynamics

Strong demand for polyethylene is expected to keep on increasing owing to the rising demand for plastic for various applications across the globe and as 1-Butene is predominately used for the production of polyethylene (LLDPE and HDPE), market for 1-Butene is also expected to remain geared.

Again, polyethylene produced from other co-monomers such as octane-1 and hexane-1 bear improved properties of the polymer in terms of strength and stress resistance in comparison to polymer produced from 1-Butene, which may lead to somewhat decrement in market share. But as 1-Butene has lower cost comparatively, preference towards production with favourable economics mitigates the market.

Despite various applications of polyethylene, it is non-biodegradable and has disposal issues due to which recycling of plastic waste is encouraged by the government. This may cause breakdown of the polyethylene market in future, which may affect the market for 1-Butene, although such a breakdown cannot be easy as new technologies are under research and development to produce bio-degradable polyethylene, which will create significant opportunity for the manufacturers.

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1-Butene Market: Segmentation

production as:
Separation of crude C4
Butane dehydrogenation
Ethylene dimerization
application as:
Polyethylene
LLDPE
HDPE
Polyethylene/polypropylene co-polymers
Butadiene
Maleic anhydride

1-Butene Market: Regional Outlook

The market for 1-Butene is strong in Asia Pacific for production of polyethylene. Increase in demand for polyethylene has attributed to the growth of 1-Butene market in Asia-Pacific. The high demand for plastic in developing countries of APAC propels the market for plastic, which in turn leads to market growth of 1-Butene.

Along with this, raw material availability and growing end-user industries are the key factors, which have bolstered the market growth of 1-Butene. China and India are expected to create substantial growth opportunities to plastic industry. As production of ethylene is shifted to shale gas plants from oil refineries, instability in supply of crude C4 is likely to affect the 1-Butene market.

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Following Asia Pacific, 1-Butene market in North America is expected to witness substantial growth since North America is a prominent region for production of C4 alpha olefin. The demand for 1-Butene is also projected to grow in the Middle East, as oil field drilling is on large scale in this region.

The Western and Eastern Europe adopt strategic initiatives, owing to which the industries in these regions constantly involve in development of new products. As a result, the demand for 1-Butene in European countries is expected to increase in future. 1-Butene market is also expected to rise in Japan, as key players from this region seek capacity expansion for business development and more penetration.

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