Isobutanol: Supply Shortage Lasts for Long in China    

Supply Shortage of Feedstock

In recent years, with the fast increasing demand from downstream sectors and the extension of new facilities for producing oxo-alcohol, China has boosted its production capacity of isobutanol to some extent. In 2006 China had a production capacity of 81 500 t/a with an output of around 60 000 tons.
    Presently the market demand for butanol and octanol is brisk both, under such circumstances, enterprises at home had their producing units optimized or its isomer ratio adjusted just for producing more of n-butyraldehyde, while iso-butyraldehyde, the feedstock needed for production of isobutanol is not enough. At the same time, somewhat of isobutyraldehyde is otherwise occupied for production of neopentylglycol . All this brings about grave shortage of raw material for iso-butanol production.
    Currently isobutanol is mainly used for production of diisobutyl phthalate (DIBP), a plasticizer, taking up 50% - 62%, the other, is used for production of isobutyl acetate, and as a substitute for butanol, it can be applied to such areas as furniture, spray lacquer for automobiles, plastic coating film, etc. The apparent consumption of isobutanol was 210 000 tons in China in 2006. It is estimated at 260 000 tons in 2008, an enormous market shortage foreseen.

China's Isobutanol Market
Dominated by Russian Product

In recent years China has been a major consumer of isobutanol worldwide in great demand for large quantities of it imported each year. It was in 2006 that China imported 145 800 tons of isobutanol, with the import value reaching US$149.8 million.
    In 2006 Russia turned out to be the largest supplier of isobutanol to China, accounting for 48.4% of the total import volume, the followers were Malaysia and Hong Kong region, taking up 13.4% and 10.8% respectively.
    In 2006 China had isobutanol imported via the following six Chinese customs of Manzhouli of Heilongjiang province in northern China, Gongbei, Huangpu, Shengzhen of Guangdong province in southern China, Nanjing of Jiangsu province and Ningbo of Zhejiang province, both eastern China etc., with the import volume accounting for 97.3% of the total import amount.
    In the next few years China will be brought into peak periods for construction of hydroxyl alcohol production units, with the completion of these projects the production of isobutanol will be lifted somewhat in China. Because of prosperous need for isobutanol, the imported products will still take the lion's share on the home market, imports amount will reach 160 000 tons as is estimated.
　　Presently isobutanol is confined to a narrow scope of use domestically. Deviates containing high value added and high technologies are less produced nevertheless. Those special plasticizers with special performance and high value-added badly needed at home have to be dependent on importing. Therefore domestic enterprises are required urgently to have their product mix optimized, develop and produce high value-added downstream products so as to enhance further economic returns.
　　
　　
  Main Producers in China  (thousand t/a)
Producers
Sinopec Qilu Petrochemical Company      15
PetroChina Jilin Petrochemical Company    12
PetroChina Daqing Petrochemical Company    7
Beijing Oriental Petrochemical Company    7.5
BASF-YPC Co., Ltd.                      40
Total                                   81.5
Source: CNCIC