China to dominate global butadiene capacity additions through 2030

China is poised to significantly expand its butadiene production capacity by 2030, backed by strong demand for butadiene derivatives such as acrylonitrile butadiene styrene (ABS) and synthetic rubbers from the automotive and tire industries. Accounting for over 50% of the expected capacity additions worldwide by 2030, China is positioning itself as the dominant player in the global butadiene market, according to GlobalData, the data and analytics company.

GlobalData’s latest report, Butadiene Industry Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants to 2030, shows that China is likely to witness a total butadiene capacity additions of 2.84 million tonnes per annum (mtpa) during 2025-30 from 13 planned and three announced projects.

Nivedita Roy, Oil and Gas Analyst at GlobalData, comments: “Butadiene is a highly versatile petrochemical with a wide range of industrial and commercial uses. Its high demand from the automotive sector, coupled with the robust growth of the rubber and plastics industry in China, is propelling market growth in the country. Additionally, China’s substantial ethylene production capacity and well-established chemical manufacturing sector are reinforcing its leading position in the global butadiene market.”

In China, the highest capacity addition is expected from the CNOOC and Shell Petrochemicals Company Huizhou Butadiene Plant 3, which has a nameplate capacity of 0.31mtpa. Located in the the Guangdong province, the plant is anticipated to commence production of butadiene in 2028. CNOOC and Shell Petrochemicals Co. Ltd. is the designated operator of this plant.

Zhejiang Petrochemical Daishan Butadiene Plant 3 follows next in terms of the capacity additions in the country, with 0.25mtpa likely to be added by 2026. Zhejiang Petrochemical Co. Ltd. is the proposed operator of this plant located in the Zhejiang province.

The third-highest butadiene capacity addition in the country is expected from the SABIC Fujian Petrochemical Zhangzhou Butadiene Plant, with a capacity of 0.22mtpa. SABIC Fujian Petrochemical Co Ltd is the designated operator of the plant, which is currently under construction and is likely to start operations next year.