The market for butyryl alcohol has become severely oversupplied

As of the end of 2018, the world's capacity of butaoctanol was 16.5 million tons per year, and China's capacity of butanol and octanol was 5.14 million tons per year, ranking first in the world.

China's butaoctanol production capacity grew from 3.7 million tons in 2014 to 5.14 million tons in 2019, with an average annual growth rate of 6.8%; production increased from 2.6 million tons to 4.1 million tons, with an average annual growth rate of 9.5%, much higher than the growth rate of other chemical products.

Affected by the demand for downstream products, the operating rate of butyl acetate and butyl acrylate is around 60%, and the operating rate of DOP is less than 50%, and the product capacity has been seriously overcapacity. Butyl acetate and butyl acrylate sales prices for a long time below the cost price, the production enterprise serious losses, enterprises to maintain a low level of operation.

Octanol downstream products are mainly dioctyl phthalate (DOP), dioctyl terephthalate (DOTP), octyl acrylate, these three products account for 98% of the downstream product capacity of butanol. The operating rate of these three products is about 60%, and the selling prices of DOP and octyl acrylate are below the product cost, especially the loss of octyl acrylate.

After analyzing the domestic and overseas markets of butanol and the application of downstream products, it is concluded that there is an overcapacity of butanol products and a lack of market demand for downstream products, resulting in low development momentum.