2021 China BDO-THF-PTMEG Market Report Sample

May 11, 2022    [Source:PUdaily]

Part 1: A review of China’s BDO-THF-PTMEG market in 2021 and its outlook for the coming years

Market review: In 2021, the Chinese government issued plastic limit order even as the prices of raw materials for BDO soared. At the same time, downstream spandex and GBL-NMP markets were booming. As a result, the BDO price started the year at CNY 12,600/ton, and ended the year at CNY 30,500/ton, up 142.1% from the end of last year. Later, the price fell to about CNY 16,000/ton as facilities previously undergoing maintenance were restarted and the high prices suppressed demand. But soon the price skyrocketed again. In this process, the prices of THF and PTMEG also surged on high feedstocks costs and strong demand from spandex industry.

Market outlook: With the issuance of plastic limit order, demand for biodegradable plastic PBAT has exploded, motivating firms to foray into this sector. Currently, proposed capacity for PBAT in China has exceeded 10 million tons per year. As new PBAT plants come online, demand for BDO is expected to increase sharply. As technologies are maturing the booming new energy vehicles and photovoltaic markets will also contribute to growth in BDO demand by first driving up demand for lithium-ion batteries, to which NMP as a solvent, produced from GBL, is essential. Additionally, the stable growth in spandex sector will have a positive impact on BDO demand as it boosts demands across the BDO-THF-PTMEG value chain. In a word, BDO demand will maintain its rapid growth in the coming years. As growth in supply remains slower than that in demand in 2022, the high BDO prices will probably continue into 2022. Starting from 2023, however, the prices may fall as growth in supply becomes faster than in demand.

Part 2: Main contents and highlights of the report

Main contents: Raw materials markets in China; China’s BDO/THF/PTMEG capacities and output; China’s BDO/THF/PTMEG imports and exports;price movement and profit margins of BDO/THF/PTMEG; demand for BDO/THF/PTMEG; expansion BDO/THF/PTMEG projects in China; and forecast of BDO supply and demand in China.

Highlights: The issuance of plastic limit order will lead to exponential growth in demand for PBAT, which in turn will drive up demand for BDO. The booming new energy vehicles and photovoltaic markets will also contribute to the growth in BDO demand by first pushing up the demand for lithium-ion batteries, to which NMP, produced from GBL, is essential. Additionally, the stable growth in spandex sector will have a positive impact on BDO demand as it boosts demands across the BDO-THF-PTMEG value chain. To sum up, there is huge growth space for BDO market.

Part 3: A snapshot of the 2021 BDO-THF-PTMEG Market Report (take BDO for example)

As Chinese manufacturers have assimilated and further improved foreign production technologies, the production capacities of domestic individual BDO facilities have expanded continuously. This has resulted in low capacity utilization rate and increasingly fierce competition in recent years, thus dampening the manufacturers’ interest in further expanding their capacities, which is proven by the 0% growth in domestic capacity in 2021. However, in the very year the status of overcapacity was disrupted as expansion of calcium carbide capacity was subject to restriction and demand accelerated from downstream spandex, GBL and PBAT industries. Thus firms again rushed to launch BDO projects. According to Suntower, China's effective BDO capacity in 2021 amounted to 2.179 million tons per year, remaining level with 2020. In the year, BDO production totalled 1.758 million tons, up 23.8%. All this indicates an industry operating rate of 80.7%, rising significantly from previous years.

In 2021, production capacities using Reppe process totalled 1.979 million tons per year, accounting for 91% of the total effective capacity. And those using allyl alcohol process amounted to 200,000 tons per year, accounting for 9% of the total effective capacity. Presently, capacities using maleic anhydride process all have been closed and thus are not included in the effective capacity. In China, all BDO manufacturers use Reppe process except Chang Chun Chemical(Panjin) and Yizheng Dalian, which adopt allyl alcohol process. 

Table 1 China’s BDO capacities and output 2017-2021 (in 10kt)

 

Table 2 Domestic BDO manufacturers’ capacities, output and operating rates in 2021

Fig. 1 Movement of average monthly BDO price in China 2020-2021

Fig. 2 Movement of average monthly BDO profits in China 2020-2021

Thanks to the booming market BDO profits have remained fat since the beginning of 2021. As a result, many firms have been lured into the industry. At present, proposed BDO capacities have exceeded 10 million tons per year. With a construction period of about two years, these new projects won't come online until the second half of 2022.

Table 3 BDO projects under construction and proposed in China

Manufacturer	Location	Capacity	Note
Hengli Energy (Yulin) New Material	Yulin, Shaanxi	180	With previous project suspended, the manufacturer plans to shift to maleic anhydride process.
Inner Mongolia Junzheng Chemical	Wuhai, Inner Mongolia	120	The company plans to launch a green recycling project, consisting of two 600kt/a BDO plants and two 1000kt/a PBAT/PBS/PBT/PTMEG plants, which will be built in two phases. The construction period is from May 2021 to December 2023.
Xinfa Group	Jining, Shandong	120	The project includes a 1200kt/a BDO and an ancillary formaldehyde unit, a 400kt/a acetic acid facility, a 100kt/a vinyl acetate, a 600kt/a PBAT unit, 400kt/a PTMEG facility, a 400kt/a spandex plant and a 100kt/a GBL/NMP unit.
Inner Mongolia Sanwei New Material	Wuhai, Inner Mongolia	90	The company plans to build an integrated project consisting of BDO, PBAT and PTMEG facilities. The Phase I project involves building a 600kt/a BDO plant, with a construction period from August 2021 to August 2024. The Phase II project involves building a 300kt/a BDO plant, with a construction period from March 2023 to December 2026.
Inner Mongolia Huaheng Energy Technology	Yima, Henan	72	Environmental Impact Assessment Report is published for public comment.
Xinjiang Korla Zhongtai Petrochemical	Guangzhou, Guangdong	60	The manufacturer plans to launch a BDO project in Shangku Petrochemical Industrial Park, Korla, Bazhou, which includes two 300kt/a BDO plants using natural gas-to-acetylene technology transferred from Sinopec Chongqing SVW Chemical.
Fujian Zhongjing Petrochemical	Fuqing, Fujian	60	The company has launched a 600kt/a BDO project. The Phase II project, which is under construction, is scheduled to be completed by 2023. The Phase Ⅲ project, which utilizes the by-product hydrogen as a raw material to further extend the value chain, will be put into production by 2024.
Shanxi Tond Chemical	Yizhou, Shanxi	50	The company has launched a 500kt/a BDO project. The Phase I 240kt/a project, started in April 2021, is expected to begin production in December 2022. Some BDO products from the project will be supplied to the company's PBAT project as raw materials, and the remainder will be sold.
…	…	…	…
Wanhua Chemical	Meishan, Sichuan	10	The company’s 100kt/a BDO project, which is designed to provide raw materials for its 60kt/a PBAT project in Sichuan, is projected to come onstream in 2022. The annual operating time for the facility is 8,000 hours. The project adopts Reppe process, which sources acetylene by converting natural gas into the feedstock.
East China Engineering Science and Technology	Hefei	10	The manufacturer has launched a 100kt/a BDO and 120kt/a PBAT project, with a construction period of about 26 months.
Xinjiang Guotai Xinhua Mining	Xinjiang Zhundong Economic and Technological Development Zone		The 100kt/a project is expected to begin production in 2022.
Hebei Bohang New Material	Renqiu,Hebei	9	The company plans to launch an integrated 110kt/a n-butane, 100kt/a maleic anhydride, 90kt/a BDO and 60kt/a PBS project.
Shandong Ruian Biotechnology	Jining, Shandong	5	The company has started a 55kt/a BDO project using maleic anhydride process, which is scheduled to begin production in October 2023.
Total	—	1064.4	—

Growing at a CAGR of 12.3% for the 2017-2021 period, China’s BDO consumption reached 1.75 million tons in 2021, up 17.4% from 2020. In 2021, the biggest consumer was the PTMEG-spandex sector, which accounted for **% of the total BDO consumption. It is followed by PBT and GBL industries, which made up **% and **% of the total consumption, respectively. PU represented **% of the total consumption. Although PBAT accounted for only **% of the total consumption in the year, the share is expected to grow rapidly due to the effects of plastic limit order.

Table 4 BDO consumption by different downstream sectors 2017-2021 (10kt)

 Since the beginning of 2021, the booming BDO market has lured many firms into this industry. Currently, proposed capacity for BDO in China has exceeded 10 million tons per year. But how much capacity will actually be delivered depends on the implementation of downstream PBAT projects. Although proposed capacity for PBAT has also exceeded 10 million tons per year, an annual capacity of only about ** tons is anticipated to come online by 2025. Considering this fact and demands from other downstream industries, it is estimated that only about ** tons of new capacities will come onstream by 2025. Meanwhile, BDO production is estimated to reach 3.57 million tons and consumption will amount to 3.52 million tons by the same year.

Table 5 Forecast of China’s BDO output for 2022-2025 (in 10kt)

 Table 6 BDO consumption by different downstream sectors 2022-2025 (10kt)

 Part 4: Catalogue of 2021 China BDO-THF-PTMEG Market Report

        1.Profile of BDO, THF and PTMEG  

1.1 Properties 

1.1.1 BDO      

1.1.2 THF       

1.1.3 PTMEG

1.2 Applications     

1.3 Production processes

1.3.1 Reppe process       

1.3.2 N-butane-to-maleic anhydride process 

1.3.3 Propylene oxide process       

1.3.4 Butadiene process 

1.4 An overview of upstream raw materials markets    

1.4.1 Methanol       

1.4.2 Maleic anhydride  

1.4.3 Calcium carbide    

2. An analysis of the BDO industry    

2.1 China’s BDO capacity and output 2017-2021

2.2 Capacities and output of BDO producers in China 

2.3 China’s BDO imports and exports in 2021     

2.3.1 China’s BDO imports in 2021      

2.3.2 China’s BDO exports in 2021      

2.4 Price movement of BDO in 2021    

2.5 Profit margin of BDO in China 2020-2021     

2.6An analysis of downstream markets in 2021   

2.7China's BDO projects under construction and proposed for the coming years       

3. An analysis of the THF industry    

3.1 China’s THF output and capacity in 2021       

3.2 China’s THF imports and exports in 2021      

3.2.1 China’s THF imports in 2021       

3.2.2 China’s THF exports in 2021

3.3 Movement of THF price in China 2020-2021

3.4 Profit margin of THF in China 2020-2021      

3.5 An analysis of downstream markets in 2021   

3.6China's THF projects under construction and proposed for the coming years       

4. An analysis of the PTMEG industry      

4.1 China’s PTMEG capacity and output 2017-2021   

4.2 Capacities and output of PTMEG producers in China    

4.3 China’s PTMEG imports and exports in 2021

4.3.1 China’s PTMEG imports in 2021 

4.3.2China’s PTMEG exports in 2021  

4.4 Movement of PTMEG price in China 2020-2021  

4.5 Profit margin of PTMEG in China 2020-2021

4.6 An analysis of downstream markets in 2021   

4.7 China's BDO projects under construction and proposed for the coming years       

5. BDO demand from downstream sectors in 2021  

5.1 An overview of downstream markets      

5.2 An analysis of downstream markets in 2021   

5.2.1 Spandex market    

5.2.2 PBT market   

5.2.3 GBL market  

5.2.4 PU market     

5.2.5 PBAT market

5.2.6 Other sectors 

6. Market outlook 2022-2025      

6.1 Forecast of BDO supply in China for 2022-2025

6.2 Forecast of BDO demand in China for 2022-2025 

6.2.1 Demand from spandex market      

6.2.2 Demand from PBT market    

6.2.3 Demand from GBL market   

6.2.4 Demand from PU market      

6.2.5 Demand from PBAT market 

 

Table& Chart Catalog

Table 1 Specifications of different PTMEG grades       

Table 2 Main applications of BDO

Table 3 Evolution of the production process 

Table 4 China’s BDO capacities and output 2017-2021 (in 10kt)

Table 5 Different BDO manufacturers’ capacities, output and operating rates in 2021

Table 6 Monthly volumes of China’s unenumerated glycols imports in 2021 (in 10kt)

Table 7 China’s other glycols (including BDO) imports in 2021 

Table 8 China’s unenumerated other glycols (including BDO) imports through different customs ports in 2021

Table 9 Monthly volumes of China’s unenumerated glycols exports in 2021 (in 10kt)

Table 10 China’s unenumerated glycols (including BDO) exports through different customs ports in 2021     

Table 11 China’s unenumerated glycols (including BDO) exports through different customs ports in 2021     

Table 12 BDO projects under construction and proposed in China      

Table 13 Monthly volumes of China’s unenumerated glycols imports in 2021 (in 10kt)

Table 14 China’s unenumerated glycols (including THF) imports through different customs ports in 2021     

Table 15 China’s unenumerated glycols (including THF) imports through different customs ports in 2021     

Table 16 Monthly volumes of China’s unenumerated glycols exports in 2021 (in 10kt)

Table 17 China’s unenumerated glycols (including THF) exports through different customs ports in 2021     

Table 18 China’s unenumerated glycols (including THF) exports through different customs ports in 2021     

Table 19 China’s PTMEG capacities and output 2017-2021 (in 10kt) 

Table 20 Different PTMEG manufacturers’ capacities, output and operating rates in 2021  

Table 21 Monthly volumes of China’s PTMEG imports in 2021 (in 10kt)  

Table 22 China’s PTMEG imports through different customs ports in 2021

Table 23 China’s PTMEG imports through different customs ports in 2021

Table 24 Monthly volumes of China’s unenumerated glycols exports in 2021 (in 10kt)

Table 25 China’s PTMEG exports through different customs ports in 2021

Table 26 China’s PTMEG exports through different customs ports in 2021

Table 27 PTMEG consumption by different downstream sectors in China 2017-2021 (10kt)   

Table 28 PTMEG projects under construction and proposed in China 

Table 29 BDO consumption by different downstream sectors 2017-2021 (in 10kt)       

Table 30 Synthetic leather resin manufacturers’ capacities and output in 2021 (in 10kt)

Table 31 Sole resin manufacturers’ capacities and output in 2021 (in 10kt)

Table 32 TPU manufacturers’ capacities and output in 2021 (in 10kt) 

Table 33 PBAT projects under construction and proposed   

Table 34 Forecast of China’s BDO output for 2022-2025 (in 10kt)     

Table 35 BDO consumption by different downstream sectors 2022-2025 (in 10kt)       

 

Fig. 1 Movement of average methanol price in 2021   

Fig. 2 Movement of average maleic anhydride price in 2021       

Fig. 3 Movement of average calcium carbide price in 2021 

Fig. 4 Different production processes’ shares of the total BDO capacity in 2021       

Fig. 5 Different manufacturers’ shares of the total BDO capacity in 2021   

Fig. 6 Different manufacturers’ shares of the total BDO output in 2021      

Fig. 7 Movement of average monthly BDO price in East China 2020-2021

Fig. 8 Changes in average monthly BDO profits in China 2020-2021 

Fig. 9 Different production processes’ shares of the total THF capacity in 2021       

Fig. 10 Different production processes’ shares of the total THF output in 2021       

Fig. 11 Comparison of average monthly prices of THF and feedstock BDO in East China 2020-2021

Fig. 12 Changes in average monthly THF profits in China 2020-2021

Fig. 13 Different manufacturers’ shares of the total PTMEG capacity in 2021       

Fig. 14 Different manufacturers’ shares of the total PTMEG output in 2021       

Fig. 15 Movement of PTMEG 1800 price in East China 2020-2021   

Fig. 16 Changes in average monthly PTMEG profits in China 2020-2021  

Fig. 17 Analysis of downstream sectors

Fig. 18 Spandex manufacturers’ capacities in 2021 (in 10kt)

Fig. 19 PBT manufacturers’ capacities in 2021 (in 10kt)      

Fig. 20 GBL manufacturers’ capacities in 2021 (in 10kt)     

Fig. 21 PBAT manufacturers’ capacities in 2021 (in 10kt)   

Fig. 22 Different downstream industries’ shares of BDO consumption in 2021       

 

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