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1,4-Butanediol

Chemical Economics Handbook

Published October 2022

1,4-Butanediol (BDO) is a bifunctional, primary alcohol that is produced by a variety of methods, mainly from petrochemicals. The major uses are in the production of tetrahydrofuran (THF) (an intermediate of spandex and other performance polymer products) and polybutylene terephthalate (PBT) resins for engineering plastics. It is also used in the manufacture of gamma-butyrolactone (GBL) and polyurethane elastomers. In addition, BDO is the starting material for polybutylene adipate terephthalate (PBAT), polybutylene succinate (PBS), and polybutylene succinate adipate (PBSA), which are synthetic biodegradable plastics.

Mainland China continues to be the world’s largest producer and consumer of BDO and has added the majority of new capacity in recent years.

The following pie chart shows world consumption of 1,4-butanediol:

Global 1-4, butanediol (BDO) consumption is concentrated in Northeast Asia (including mainland China); in 2022, it accounted for more than three-quarters of total consumption. In mainland China, BDO consumption has increased dramatically with the rapid growth of spandex and PBT production; these markets will continue to expand in the forecast period.

World consumption is expected to grow at an average rate of nearly 9% annually during the forecast period, and will continue to be driven by the mainland Chinese market. Robust demand growth is expected during 2022– 27 in mainland China as a result of increased PBAT and PBS production. In other regions, more moderate growth is expected.

THF is the primary derivative of BDO, accounting for nearly half of consumption in 2022, with the majority of THF used for PTMEG production (for spandex); PBT production is the next-largest market segment, followed by GBL production. By 2027, the market share of the three segments—THF, PBT, and GBL—will change, with GBL production becoming the second-largest market after THF. GBL production growth is driven by increased demand in its end-use product N-methyl-2-pyrrolidone (NMP), which is used in electrodes for lithium-ion battery manufacturing, among other applications.

The 1,4-butanediol industry has attracted significant investment in the development of biosuccinic acid and the production of bio-based BDO that is commercially viable from sustainable sources. Although the firstgeneration industrial-scale plant has been completed and is in operation, several other projects have been cancelled following financial issues within the companies or shifts in focus from production to research and development. Although the commercial production of bio-based BDO is currently small, the situation is expected to improve in the coming years fueled by government determination for low-carbon economies.

For more detailed information, see the table of contents, shown below.

S&P Global’s Chemical Economics Handbook – 1,4-Butanediol is the comprehensive and trusted guide for anyone seeking information on this industry. This latest report details global and regional information, including

Key Benefits

S&P Global’s Chemical Economics Handbook – 1,4-Butanediol has been compiled using primary interviews with key suppliers, organizations and leading representatives from the industry in combination with S&P Global’s unparalleled access to upstream and downstream market intelligence, expert insights into industry dynamics, trade and economics.

This report can help you:

  • Identify trends and driving forces influencing chemical markets
  • Forecast and plan for future demand
  • Understand the impact of competing materials
  • Identify and evaluate potential customers and competitors
  • Evaluate producers
  • Track changing prices and trade movements
  • Analyze the impact of feedstocks, regulations, and other factors on chemical profitability

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Table of Contents

Executive summary 6
Summary 8
Industry trends and dynamics 16
Manufacturing processes 17
Reppe process 17
Butadiene–acetic acid process 18
Propylene oxide process 19
Dichlorobutene process 19
n-Butane/maleic anhydride process 20
Renewably derived processes 22
Biosuccinic acid process 22
Genomatica process 23
Environmental and health issues 25
Supply and demand by region 26
United States 26
Producing companies 26
Salient statistics 26
Consumption 27
Tetrahydrofuran 29
gamma-Butyrolactone 30
Polyurethanes 31
Polybutylene terephthalate resins 31
Other 32
Price 32
Trade 33
Canada 34
Latin America 34
Western Europe 35
Producing companies 35
Salient statistics 36
Consumption 37
Tetrahydrofuran 39
Polybutylene terephthalate (PBT) resins 39
gamma-Butyrolactone 40
Polyurethanes 40
Polybutylene adipate terephthalate (PBAT) 41
Price 41
Trade 41
Imports 42
Exports 42
Central Europe 43
Producing companies 43
Salient statistics 44
Consumption 44
Trade 44
Imports 44
Exports 45
CIS and Baltic States 45
Producing companies 45
Supply and demand 45
Consumption 46
Trade 46
Imports 46
Exports 47
Middle East 47
Producing companies 47
Salient statistics 48
Consumption 49
Trade 51
Imports 51
Exports 52
Africa 52
Producing companies 53
Salient statistics 53
Consumption 53
Trade 53
Imports 53
Exports 54
Indian Subcontinent 54
Mainland China 55
Producing companies 55
Salient statistics 61
Consumption 62
Tetrahydrofuran 62
Polybutylene terephthalate resins 63
gamma-Butyrolactone 63
Polybutylene adipate terephthalate/polybutylene succinate (PBAT/PBS) 64
Polyurethanes 64
Price 64
Trade 65
Japan 66
Producing companies 66
Salient statistics 67
Consumption 68
Tetrahydrofuran 69
Polybutylene terephthalate resins 70
Polyurethanes/other 70
Price 71
Trade 71
Other Northeast Asia 72
Overview 72
Producing companies 72
Salient statistics 72
South Korea 73
Taiwan 75
Southeast Asia 77
Overview 77
Malaysia 78
Appendix—Geographic regions 80
Additional resources 81
Revisions 83
Data Workbook 84
Notice 85

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