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BDO capacity from 2023 to 2026

September 28, 2023

Latest company news about BDO capacity from 2023 to 2026

The growth history of BDO downstream

From 2020 to 2021, downstream demand for degradable plastic PBAT and battery auxiliary material γ-butyrolactone has experienced explosive growth, resulting in BDO being hard to find. Profits have increased from 2,000 yuan/ton to 20,000 yuan/ton, and production capacity has ushered in Rapid expansion.

In 2023, the total production capacity of 22 BDO companies across the country will reach 3.75 million tons. In the next three years, as many as 39 companies are planned to be under construction across the country, with a total production capacity of 10.586 million tons.

Among them, Xinjiang ranks first with a production capacity of 1.816 million tons. Based on the calculation that the production of 1 ton of BDO consumes 0.91 tons of methanol, in the next three years, new methanol demand will reach as much as 1.65 million tons, which will inevitably intensify the tight supply of methanol and form a strong support for spot prices.

In addition to Xinjiang, in 2024, more than 1.8 million tons of BDO production capacity is planned to be added along the coast, and supply may exceed demand.

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