Will China Butadiene Market Suffer Oversupply in the Future?

SCI99

2019-11-18

Will China Butadiene Market Suffer Oversupply in the Future?

With some big ethylene projects under construction, the butadiene capacity is expected to increase obviously in the future. Meanwhile, newly added downstream units are also planned to go into production. Therefore, as upstream and downstream newly added units will be put into operation, China’s butadiene oversupply will become the market focus in the next five years. So let’s make a comparison of new butadiene and its downstream capacity to see the future supply and demand growth in the butadiene market.

First of all, China’s butadiene capacity will increase notably. The year of 2020 will see the new butadiene capacity going into production intensively. Within this year, there will be 780kt/a butadiene units going into production, including these units at Zhejiang Petrochemical, Hengli Petrochemical (Dalian), Liaoning Bora Petrochemical, Wanhua Chemical Group, Sinochem Quanzhou Petrochemical, Sinopec-KPC (Guangdong) Refinery & Petrochemical, Sinopec & SK Petrochemical, etc., which will replenish China’s butadiene units notably. In 2021, there will be 600kt/a butadiene units going into production including these units at Zhangzhou Gulei Refinery, Shenghong Petrochemical, Sinopec Hainan Refining & Chemical and Shandong Shouguang Luqing Petrochemical. From 2022 to 2024, there will be 680kt/a butadiene units going into production. By the end of 2024, if the above butadiene unis are put into operation as scheduled, China’s butadiene capacity will reach 6,120kt/a, up 2,060kt/a from 2019. China’s butadiene supply will be replenished notably.

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