BDO Capacity Tends toward Surplus

By Cui Xiaoming

1,4-Butanediol (BDO) is used mainly to produce tetrahydrofuran (THF), gama-butyrolactone (GBL), polybutylene terephthalate (PBT), polytetramethylene ether glycol (PTMEG) and polyurethane (PU). In recent years, due to the constant development of PTMEG, PU elastic fiber and PBT, the production of BDO has been promoted globally.

Capacity expanded in China

As of December 2014, China’s total capacity to make BDO had reached 1.679 million t/a. Taiwan Changchun Chemical Group was the largest BDO producer, with a capacity of 186 kt/a, accounting for around 11.08% of the national total. Xinjiang Markor Chemical Co., Ltd and Shanxi Sanwei Group Co., Ltd came next with respective capacities of 160 kt/a and 150 kt/a, accounting for around 9.53% and 8.93% of the total. The Reppe method was China’s major BDO production process, and the capacity to make BDO using the Reppe method reached 1.055 million t/a, accounting for around 62.83% of the national total. Butane/maleic anhydride method came next with a capacity of 438 kt/a, accounting for around 26.09% of the total. Propylene oxide/allyl alcohol ranked third with a capacity of 186 kt/a, accounting for around 11.08%.
China’s BDO producers were mainly distributed in Northwest China, East China and North China. The capacity to make BDO in North China, Northwest China, East China, Southwest China, Central China, South China and Northeast China accounted for around 14.89%, 28.59%, 23.76%, 10.13%, 11.32%, 2.38% and 8.93% of the national total, respectively. The capacity to produce BDO in Jiangsu province, Xinjiang region, and Henan province was 331 kt/a, 250 kt/a and 190 kt/a, respectively, accounting for around 19.71%, 14.89% and 11.32% of the national total.
Most BDO producers are matched with downstream derivative units (mostly PTMEG and PBT units). China’s major BDO producers in 2014 are listed in table 1.
In the next few years, many enterprises like Xinjiang Markor Chemical Co., Ltd, Inner Mongolia Dongyuan Scien-Tech Co., Ltd, Sinopec Sichuan Vinylon Works, Chongqing Heyou Alkali-Amine Industry Co., Ltd, Shaanxi Ronghe Chemical Group Co., Ltd and Shaanxi Yanchang Petroleum (Group) Corporation plan to construct or expand BDO units that will mostly use the Reppe production process and will be matched with downstream product units. The capacity growth will be mostly concentrated in Northwest China’s Xinjiang region, Ningxia region and Shaanxi province, and Southwest China’s Sichuan province and Chongqing. It is expected that by 2018, China’s capacity to make BDO will exceed 2.8 million t/a, and will be in surplus. China’s BDO units being built or expanded during 2014-2018 are shown in table 2.

Limited growth of consumption

In recent years, with the development of downstream derivatives like PBT resin and spandex, China’s apparent consumption of BDO has climbed constantly. China’s apparent consumption of BDO was only 80 kt in 2003, and increased to around 523 kt in 2013 with an average annual growth of around 10.57%. The average annual growth of apparent consumption was around 14.83% during 2008-2013. With the rapid growth of domestic BDO capacity and output, self-sufficiency also climbed considerably, from 25.0% in 2003 to 92.35% in 2013.
BDO in China was mainly used in the production of THF/PTMEG, PBT, GBL as well as PU. The consumption proportion of BDO in 2013 was around 36.0% for THF/PTMEG, around 23.0% for PBT, around 21.0% for GBL, around 18.0% for PU and around 2.0% for other sectors.
In the next few years, China’s demand for BDO will still increase stably, and THF/PTMEG will still be the main driving force to promote the growth of BDO demand. China’s spandex sector has entered a mature stage, the demand growth of PTMEG will tend to be stable and the growth of demand for THF will also tend to slow down. Therefore, the demand for BDO is unlikely to increase drastically. The market volume of GBL will be limited, and the market competition will be very fierce. The market growth of PU synthetic leather slurry and shoe sole material will also not be great.
Considering the geography of domestic consumption, the distribution of downstream units is the densest in East China, the consumption of BDO is also largest there, and the application fields of BDO are downstream THF/PTMEG units, GBL units, PBT units as well as some large slurry and shoe sole fluid plants. In South China, the consumers are mainly in the shoe sole fluid and slurry sectors, and some BDO is used to produce other PU products. For example, BDO is used as chain extender in the TPU (thermoplastic PU elastomer) sector, and also has applications in sectors like coatings and plasticizer, but the quantity is relatively small. In North China, the number of downstream units is relatively small, and BDO is mainly used in sectors such as THF/PTMEG and GBL.
By virtue of PBT’s special physical properties, its popularity in energy-saving lamps and automotive engineering plastics has grown rapidly, the applications of its various modified materials have become more extensive, and PBT will be the downstream sector with fastest growth of BDO consumption in the foreseeable future. As the leader for the production of biodegradable plastic materials, polybutylene succinate (PBS) has very extensive applications, can be used in the sectors such as packaging, tableware, cosmetic bottle, disposable plastic products, agricultural films and chemical fertilizer slow-release material, and is likely to become a bright spot in the development of BDO consumption. In addition, BDO has applications in sectors such as thermoplastic polyester elastomers (TPEE), hot melt adhesives and polyols, and the consumption of BDO in these sectors is also increasing. It is expected that by 2018, China’s total demand for BDO will reach around 700 kt.            
Table 1    Major BDO producers in China in 2014

Producer    Location    Capacity
(kt/a)    Production process    Startup time    Downstream units
Shanxi Sanwei Group Co., Ltd    Hongdong of Shanxi province    75    Reppe method    2002/2006    THF/PTMEG/GBL
Shanxi Sanwei Group Co., Ltd    Hongdong of Shanxi province    75    Butane/maleic anhydride method    2010    THF/PTMEG/GBL
Xinjiang Markor Chemical Co., Ltd    Korla of Xinjiang region    160    Reppe method    2008/2013    THF/GBL
Nanjing Bluestar New Chemical Materials Co., Ltd    Nanjing of Jiangsu province    110    Butane/maleic anhydride method    2009/2012    THF/PTMEG/GBL
Taiwan Changchun Chemical (Jiangsu) Co., Ltd     Yizheng of Jiangsu province    36    Propylene oxide/allyl alcohol method    2005    THF/PTMEG
Shaanxi Bidiou Chemical Co., Ltd    Weinan of Shaanxi province    130     Reppe method    2009/2013    PTMEG/GBL
Sichuan Tianhua?Co., Ltd    Luzhou of Sichuan province    85    Reppe method    2006/2012    THF/PTMEG/GBL
Fujian Meizhouwan Chlor-Alkali Industry Co., Ltd    Quanzhou of Fujian province    40    Reppe method    2009/2012    PBT
Yunnan Yunwei?Group Chemical Co., Ltd    Qujing of Yunnan province    25    Reppe method    2009    -
Shandong Dongying Shengli?Zhongya Chemical Co., Ltd    Dongying of Shandong province    68    Butane/maleic anhydride method    2000/2010    THF/GBL
Henan?Kaixiang Fine Chemical Co., Ltd    Yima of Henan province    90    Reppe method    2011/2012    -
Hemei Company of Henan Coal Chemical Group    Hebi of Henan province    100    Reppe method    2012/2013    PTMEG
Xinjiang Tianye (Group) Co., Ltd    Shihezi of Xinjiang region    90    Reppe method    2013    -
Sinopec Yizheng Chemical Fiber Co., Ltd    Yizheng of Jiangsu province    100    Butane/maleic anhydride method    2013    THF/PBT/GBL
Zhejiang Zhongjia Huachen Energy Co., Ltd    Pinghu of Zhejiang province    55    Butane/maleic anhydride method    2013    -
Taiwan Changchun Group (Panjin) Petrochemical Co., Ltd    Panjin of Liaoning province    150    Propylene oxide/allyl alcohol     2014    PTMEG
Zhejiang Jiangning Chemical?Co., Ltd    Jiangshan of Zhejiang province    30    Butane/maleic anhydride method    2013    THF/GBL
Chongqing Chiyuan Chemical Co., Ltd    Chongqing    60    Reppe method    2014    PTMEG
Guodian Sinopec Ningxia?Energy and Chemical Co., Ltd    Yinchuan of Ningxia region    100    Reppe method    2014    PTMEG/GBL
Inner Mongolia?Dongyuan?Scien-Tech Co., Ltd    Wuhai of Inner Mongolia?    100    Reppe method    2014    -
Total         1 679            


Table 2    China’s BDO units being built or expanded during 2014-2018

Producer    Capacity (kt/a)    Production process    Remarks
Xinjiang Tianye Group     110    Reppe method    The third phase project will be put into operation in 2015
Inner Mongolia?Dongyuan Scien-Tech Co., Ltd    300    Reppe method    The first phase 100 kt/a project started up in 2014
Guodian Younglight Energy Chemical Group Co., Ltd    200    Reppe method    The first phase 100 kt/a project was put into production in 2014
Chongqing Chiyuan Chemical Co., Ltd    60    Reppe method    The project started up in 2014
Shaanxi Hancheng Tiangong Metallurgy Co., Ltd    60     Reppe method    The project will be put into operation in 2015
Xinjiang Guotai Xinhua Mining Co., Ltd    200    Reppe method    The project will be put into production in 2015
Xinjiang Markor Chemical Co., Ltd    100    Reppe method    Cooperating with BASF, the company will put the third phase project into production in 2015
Xinjiang Blue Ridge Tunhe Chemical Industry Co., Ltd    100    Reppe method    The project will be put into operation in 2016
Sinopec Sichuan Vinylon Works    200    Reppe method    Cooperating with SK of South Korea, the company will put the project into operation in 2015
Shaanxi?Delin Chemical Co., Ltd    60    Reppe method     The project will be put into operation in 2015
Shaanxi Ronghe Chemical Group Co., Ltd    120    Reppe method     The first phase 60 kt/a project will start up in 2015
Shaanxi Yanchang Petroleum (Group) Corporation    100    Reppe method    The project is planned to be put into operation in 2015
Shanxi Sanwei Group    100    Reppe method    The fourth phase project will be put into operation in 2016
Fujian Meizhouwan Chlor-Alkali Industry Co., Ltd    40    Reppe method     The project will be put into operation in 2015
Daqing?Zhonglan Petrochemical?Co., Ltd    50    Reppe method    The project will be put into production in 2016
Gansu Liyou Energy and Chemical Co., Ltd    50    Reppe method    The project will be put into operation in 2015
Taiwan Changchun Chemical (Jiangsu) Co., Ltd    60    Propylene oxide/allyl alcohol    The project will be put into production in 2015
Inner Mongolia Zhengxiangbaiqi Huatong Investment Co., Ltd    300    Reppe method    Being planned for construction
Inner Mongolia Yidong Investment Group Co., Ltd    200    Reppe method    Being planned for construction
Shaanxi Hengyuan Coal & Electricity Group Co., Ltd    100    Reppe method    Being planned for construction
Chongqing Heyou Alkali-Amine Industry Co., Ltd    130    Reppe method    Being planned for construction
Shanxi Linfen Yinguang Experimental Co., Ltd    55    Reppe method    Being planned for construction
Total     2 695