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September 21, 2017 12:00 AM

Butadiene market recovering from storm Harvey

Shahrzad Pourriahi
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    *See the ERJ Special Report in the Sept/Oct issue of European Rubber Journal magazine for the full Q&A interview with Bart Kalkstein about the future role of carbon black in the era of sustainability.

    “We understand that, with one exception, all of the US butadiene producers that were impacted by the storm are running or in start-up mode,“ said the firm’s 20 Sept update.

    But it is still not business as usual in the rubber feedstock sector, IHS Markit noting that “logistics remain an issue with both barge and rail traffic running below full capability.”

    More generally, the report said recovery across the petrochemicals supply chain was progressing with most capacity back on line and operating rates continuing to ramp up.

    But, while crude and refined product price responses are returning to before-hurricane values, "downstream chemical products are seeing a variety of behaviours,” added the update.

    “For chemicals that were in tight supply, the price effects are pronounced and are expected to remain elevated through the fourth quarter and possibly into 2018,” said IHS Markit.

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