China to dominate global butadiene capacity additions through 2030

China is poised to significantly expand its butadiene production capacity to meet strong domestic demand from the automotive and tire sectors while reducing its reliance on foreign imports. The country is set to retain its position as the world’s largest contributor to butadiene capacity additions through 2030, according to GlobalData.

GlobalData’s latest report, Butadiene Industry Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants to 2030, reveals that China is likely to account for more than half of the expected butadiene capacity additions worldwide by 2030.  

Nivedita Roy, Oil and Gas Analyst at GlobalData, comments: “Butadiene is a crucial raw material for synthetic rubbers like polybutadiene and styrene-butadiene rubber used heavily in tire manufacturing. The rapid growth of China’s electric vehicle (EV) market and automotive industry is increasing the need for high-performance specialty tires and advanced elastomers, thus driving major butadiene capacity additions. It is further supported by the high ABS (acrylonitrile butadiene styrene) demand in consumer electronics, home appliances, and vehicle interior components.”

The butadiene capacity additions in China are expected to come from 17 planned and announced projects. The highest capacity addition is expected from the CNOOC and Shell Petrochemicals Company Huizhou Butadiene Plant 3 in Guangdong province. CNOOC and Shell Petrochemicals Co Ltd is the designated operator of this project and also holds equity stake. The project is slated to commence operations in 2028.

The Zhejiang Petrochemical Daishan Butadiene Plant 3 in Zhejiang province and SABIC Fujian Petrochemical Zhangzhou Butadiene Plant in Fujian province represent the next-largest capacity additions in the country. Both are expected to come onstream this year.

Roy concludes: “By scaling up advanced butadiene projects, China is successfully reducing its historical reliance on imports. Ultimately, the surge in capacity not only meets the massive domestic industrial demand but also cements China’s role as the primary driver of the global butadiene market through 2030.”