With the establishment of a 155,000-ton/year production facility by Shell and CNOOC in the South China Sea in 2006, followed by Zhenhai Refinery’s 150,000-ton/year plant in 2008 and Daqing Petrochemical Company’s 70,000-ton/year capacity completed in 2007, China's butadiene production capacity has been expanding rapidly. By 2006, it was estimated that the country's total butadiene production capacity would reach around 1.3 million tons, with projections rising to approximately 1.7 million tons by 2010. Meanwhile, domestic consumption was expected to grow from about 1.17 million tons in 2006 to roughly 1.44 million tons by 2010. Experts noted that if plants operate at an efficiency of 90%, the supply-demand balance in the domestic market could be maintained. This prompted warnings that future expansions and new projects in the butadiene sector should be carefully managed, while efforts should also focus on broadening its application areas.
Since the first domestic butadiene plant came online in 1971, the industry has seen significant development. By the end of 2003, China’s production capacity had reached 933,000 tons, with output at 858,000 tons. It was anticipated that by the end of the year, the combined capacity of 21 butadiene units would reach 1.145 million tons. However, despite this growth, domestic demand still outpaced local supply, leading to substantial imports. In 2004, for example, imports reached 195,900 tons—up 44.15% from 2003—and accounted for 18.4% of total consumption. From 1999 to 2004, the average annual import growth rate stood at about 17.44%.
The increase in apparent consumption of butadiene has been steady, driven largely by the growth of industries such as synthetic rubber. In 1995, the country consumed just 411,100 tons, but by 2004, this figure had climbed to 1,105,300 tons. The average annual growth rate during this period was approximately 11.6%.
In terms of traditional applications, butadiene is primarily used in the production of butadiene rubber, styrene-butadiene rubber (SBR), SBS elastomers, and ABS resins. In 2004, the consumption structure was as follows: 36% for butadiene rubber, 36.1% for SBR, 12.6% for SBS, 10.6% for ABS, and 4.7% for other uses.
Butadiene rubber remains the largest consumer, with 397,000 tons produced in 2004 and about 383,000 tons of butadiene consumed. Although production capacity may not grow significantly by 2006, companies are expected to meet rising demand through higher operating rates. Consumption is projected to rise to 400,000 tons by 2006 and 410,000 tons by 2010.
SBR is the second-largest application, with 469,000 tons produced in 2004 and 385,000 tons of butadiene consumed. By 2006, SBR-related butadiene use is expected to reach 350,000 tons, increasing to 380,000 tons by 2010.
SBS elastomers rank third, with 242,000 tons produced in 2004 and 134,000 tons of butadiene used. As SBS finds more applications in bitumen and polymer modification, consumption is expected to grow to 160,000 tons by 2006 and 170,000 tons by 2010.
ABS resin consumption has also increased, with 600,000 tons produced in 2004 and 113,000 tons of butadiene used. With the expansion of the auto and electronics sectors, demand for ABS is expected to surge, reaching 200,000 tons by 2006 and 400,000 tons by 2010.
Other applications include nitrile rubber, latex, adiponitrile, and hexamethylenediamine, with 50,000 tons of butadiene consumed in 2004. Projections suggest this will rise to 60,000 tons by 2006 and 80,000 tons by 2010.
To improve the industry, experts recommend focusing on technology upgrades, consolidating facilities, reducing energy and material consumption, and enhancing automation. Additionally, the adoption of selective hydrogenation (KLP technology) can help save energy and improve efficiency. With over 10 units already using this technology, China should accelerate its research and industrial implementation. Expanding into new applications, such as converting butadiene to propylene or producing adiponitrile, is also essential to ensure long-term growth and sustainability.
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