BDO (1,4-butanediol) is an important organic and fine chemical raw material, widely used in healthcare, chemicals, textiles, papermaking, automobiles and many other fields. BDO can be used to produce tetrahydrofuran (THF), polybutylene terephthalate (PBT), gamma-butyrolactone (GBL), PU resin, coatings, plasticizers, and brighteners for the solvent and electroplating industries.
Rising Trend of PBAT Industry
As environmental protection efforts intensify, most countries worldwide have begun to restrict the use of traditional plastics. Biodegradable plastics have emerged as a significant alternative to traditional plastics. Biodegradable plastics generally refer to plastics that can be completely decomposed into inorganic substances by environmental microorganisms after being discarded. This category chiefly includes PBAT, PBS, PLA, PHA, among others. Among various biodegradable plastics, PBAT stands out for its cost-effectiveness. With mature technology and high cost performance, PBAT is expected to take the lead in the biodegradable plastics market. Compared to other biodegradable plastic varieties, PBAT’s overall performance suits requirements in downstream sectors, including packaging, fibers, agriculture, medical, and others.
China’s consumption of biodegradable plastics has shown an average annual growth rate of around 20% over the past 5 years, according to public reports. With the implementation of regulations like “Plastic Restriction Order”, the replacement of traditional plastics lies in areas such as single-use films, express packaging, and online food delivery. Buoyed by robust demand for biodegradable materials, Chinese manufacturers within the industry have shifted from predominantly export-oriented to mainly serving the domestic market, meeting the increasing local demand. Under the influence of environmental policies like carbon tariffs, the development of a low-carbon economy has become the mainstream international agenda. Fields such as biodegradable materials are expected to be a significant driving force for leading the low-carbon development of the global chemical industry. Against this backdrop, it is projected that markets represented by Europe and North America will continue to maintain strong demand for biodegradable materials.
In 2023, China’s consumption of BDO in the PBAT industry amounted to *** tonnes, accounting for ***% of the country’s total BDO consumption, exhibiting a year-on-year increase of ***%, according to PUdaily.
China's BDO Capacity & Output
In 2023, Chinese new BDO capacities included Inner Mongolia Huaheng’s 208ktpa BDO facility and MarkorChem’s 100ktpa facility in Xinjiang. Currently, Dongyuan Scien-Tech remains the largest producer of BDO and related downstream products in China, with a BDO capacity of 380ktpa.
China’s BDO capacity reached ***ktpa in 2023, an increase of ***% compared to the previous year. China’s output of BDO in 2023 totaled *** tonnes, a year-on-year increase of ***%, according to PUdaily.
Although the growth rate of output slightly exceeded the growth rate of capacity, the situation of overcapacity remains very serious. In 2023, operating rates of BDO fluctuated around 50-70%, with an annual average operating rate of about ***%.
China’s BDO Consumption
In 2023, China’s BDO consumption amounted to *** tonnes, an increase of ***% year-on-year, showing a significant growth trend.
PBT and PTMEG remained the two major downstream industries of BDO. In 2023, BDO consumption in these two sectors showed a recovery growth.
Meanwhile, the ban on fuel vehicles in multiple countries and strong support for the new energy sector have led to the rapid rise of the new energy industry, represented by NEVs and photovoltaics. As the core power storage device in this industry, the demand for lithium batteries has surged, promoting the rapid growth of the GBL-NMP industry chain, and this upward trend has also accelerated the consumption of BDO.
New highlights of the report include:
If you are interested in the growth points and consumption of BDO in China in 2023, you can subscribe to China BDO-THF-PTMEG Market Report 2023, published by PUdaily.
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