The new report by Procurement Resource, a global procurement research and consulting firm, looks in-depth into the costs involved in the production of 1,3-butadiene. The comprehensive report analyses the production cost of the material, covering raw material costs and co-product credit, equipment costs, land and site costs, labour wages, maintenance costs, financing charges, and the depreciation cost. The extensive study describes the step-wise consumption of material and utilities, along with a detailed process flow diagram. The report also assesses the latest developments within the 1,3-butadiene industry that might influence the costs of production, looking into the capacity expansions, plant turnarounds, and mergers, acquisitions, and investments.
1,3-Butadiene is a synthetic, colourless gas that is practically insoluble in water but readily soluble in ether, acetone, benzene, and ethanol. It has a mild gasoline-like odour. It is widely used as a monomer to produce polymers and copolymers and also as a chemical intermediate in the chemical industry.
In recent turmoil of events caused by the COVID-19 pandemic, many countries were forced to adopt some measures to ensure the sustainability of the chemical industry. Following such precautions, India has recently imposed a 10% import tax on the polybutadiene rubber import from South Korea to support the domestic market scenarios, which will be effective from 28th January, 2021. This move might increase the production cost of tyre makers in India such as MRF, Apollo Tyres, and CEAT but will help the polybutadiene producing companies such as Reliance Industries. Such developments are expected to influence the production cost of 1,3-butadiene.
The production cost report by Procurement Resource assesses the production of 1,3-butadiene via C4 hydrocarbons, and via Houdry Catadiene process. The most common method used to produce 1.3-butadiene is through C4 hydrocarbons. This production method involves the process of steam cracking, where hydrocarbons are mixed with steam in order to lose 1,3-butadiene. The reaction takes place at a high temperature of 900O C.
Procurement Resource ensures that our clients remain at the vanguard of their industries by providing actionable procurement intelligence with the help of our expert analysts, researchers, and domain experts. Our team of highly seasoned analysts undertake extensive research to provide our customers with the latest and up-to-date market reports, cost-models, price analysis, benchmarking, and category insights, which aid in simplifying the procurement process for our clientele. We work with a diverse range of procurement teams across industries to get real-time data and insights that can be effectively implemented by our customers. We also track the prices and production costs of an extensive range of goods and commodities, thus, providing you with the updated and reliable data. We, at Procurement Resource, with the help of the latest and cutting-edge techniques in the industry, help our clients understand the supply chain, procurement, and industry climate, so that they can form strategies which ensure their optimum growth.