Wanhua Chemical Accelerates 30,000-Ton MIBK Project China Faces New Supply Surge Despite 13.35 Percent Demand Jump

On July 14, Wanhua Chemical announced a key milestone for its planned 30,000-ton/year MIBK plant in Yantai—its environmental impact report has entered the final public disclosure phase. The ambitious project, including new main units, storage tanks, and major supporting infrastructure, is set within the Yantai Chemical Industry Park.

Methyl isobutyl ketone (MIBK), a colorless solvent widely used in coatings, adhesives, lubricants, and especially as a critical raw material for rubber antioxidants in tire manufacturing, has seen demand climb. In 2024, the growth rate in downstream demand soared to a record 13.35%. However, domestic production expansion has outpaced consumption, pushing the market further into oversupply.

Globally, major MIBK producers include Shell (115,000 tpa), Eastman (90,000 tpa), and South Africa’s Sasol (60,000 tpa), with total overseas capacity reaching 484,000 tons/year. China remains the world’s largest consumer but faces chronic cost competition and dumping from international players, prompting continued anti-dumping duties on imports from Korea, Japan, and South Africa.

As of 2024, China’s own MIBK capacity reached about 135,000 tons, with another 155,000 tons planned. Notably, large-scale projects—like the 48,000-ton Ruibo Group plant utilizing advanced acetone one-step technology—are coming online, further intensifying competition.

Despite a five-year export growth rate of 23.87%, China’s export volume remains limited and insufficient to fully absorb excess supply. In 2025, four new MIBK units totaling 75,000 tons/year are expected to enter production. Industry players must ramp up exports to relieve domestic pressure and maintain profitability as the market tips further toward oversupply.