In recent years, BDO has been widely used as a synthetic raw material for the degradable plastic PBAT, and it is an important organic chemical product that realizes the environmental protection of plastics.
In 2020, the domestic apparent consumption of BDO is 1.38 million tons, and the first downstream application is the TMEG-spandex industry chain. BDO consumption has grown at a relatively high rate in the past five years, with a compound growth rate of 10.0% from 2016 to 2020. In 2020, the domestic consumption of BDO will be 1.38 million tons, of which PTMEG accounts for 51.6%. PTMEG’s main downstream spandex production capacity is still growing rapidly; followed by PBT engineering plastics, accounting for 26.2%; PBAT consumption will not be prominent in 2020. Only 2.4% of total demand. We believe that in the next five years, among the downstream products of BDO, the terminal consumption of PBAT, GBL and PTMEG will all show rapid growth. In particular, the explosive growth of PBAT will greatly stimulate the demand for BDO, and the industry will enter a boom cycle.
PBAT: The ban on plastics promotes the rapid growth of degradable plastics, and PBAT is expected to take the lead in increasing volume. Environmental and resource issues have become increasingly prominent, and fully biodegradable plastics are the most effective way to solve the pollution problem of disposable plastic waste. In recent years, my country has intensively issued a number of policies on plastic restriction to promote the gradual replacement of traditional plastics by degradable plastics. The demand for biodegradable plastics is about to enter an explosive period.
PBAT technology is mature and cost-effective, and it is expected to take the lead in the degradable plastics market. The increase in PBAT output will be the largest increase in demand for BDO in the future.
