China BDO Market December 2025: Weak Volatility Amid Oversupply & Export Pressure

Industry Insight: Chronic supply-demand imbalance, export headwinds, and inventory accumulation keep China’s BDO market in a low-level stalemate—short-term rebound hinges on Spring Festival stockpiling.

Butanediol (BDO) is a critical petrochemical intermediate widely used in polyurethane, spandex, engineering plastics, and electronic chemicals. As December begins, China’s BDO market continues its weak volatility trend, pressured by persistent oversupply, export challenges, and sluggish price momentum. Below is a comprehensive analysis of market dynamics and future outlook.

China BDO Market Report December 2025

china-bdo-market-report-december-2025

1. Market Overview: Weak Volatility Driven by Core Pressures
China’s BDO market remains trapped in a low-level stalemate in December, with three key factors dominating the trend:
• Chronic oversupply: Capacity expansion outpaces demand growth by a wide margin.
• Export pressure: EU anti-dumping policies and Saudi competition weigh on overseas sales.
• Inventory accumulation: Stock levels have been on the rise since midyear, suppressing price upside.
Despite marginal growth expected in both supply and demand this month, the core supply-demand imbalance is unlikely to be significantly alleviated.
2. Supply Side: Capacity Expansion Outpaces Demand Growth
2.1 Capacity & Production Dynamics
By the end of November 2025, China’s total BDO production capacity reached 5.461 million tons per year (t/a), representing a 16.39% year-on-year increase. Production growth accelerated sharply in the second half of the year, with output expanding at a rate far exceeding the growth of downstream demand—laying the foundation for chronic oversupply.
2.2 Supply Growth Outlook
December BDO supply is expected to grow 2.34% month-on-month, driven by the gradual restart of some previously idled plants. However, the overall supply volume will remain at a high level, continuing to exert pressure on the market.
3. Demand Side: Marginal Growth Fails to Offset Oversupply
3.1 Demand Performance
Supported by capacity expansions in downstream sectors (e.g., spandex, polyurethane), China’s BDO consumption increased 8.64% year-on-year. Despite this growth, the demand uptick is insufficient to absorb the rapid supply expansion, leaving the market in a state of oversupply.
3.2 Demand Growth Outlook
December downstream demand is projected to rise 2.33% month-on-month, slightly lagging behind supply growth. The demand recovery remains modest, with most downstream enterprises maintaining “just-in-time procurement” strategies to avoid inventory risks.

Dow Europe Polyether Polyols Price Hike: €150/MT in EMEAI 2025

China Fine Chemicals Industry Transformation: Low-Carbon & Technological Restructuring 2025

Step

Country*
Your industry*
Subject *
What is your request? *

Next Step

First name *
Last name *
Phone *
Email *
Company name *
Verification Code *

China BDO Market: Weak Volatility Persists in December Amid Oversupply & Export Pressure

China BDO Market December 2025: Weak Volatility Amid Oversupply & Export Pressure