16 March 2012 07:56 [Source: ICIS news]
This is a stark contrast from the industry’s sterling performance last year.
Fu, in a slide presentation, showed that
The outlook for
This implies that Chinese BDO producers will have to scale back on their BDO run rates through next year, given the wide difference between the projected output and demand.
The decline in BDO demand can be attributed to the weak performance of key downstream gamma-butyrolactone (GBL) and polybutylene terephthalate (PBT) sectors, Fu said.
GBL is commonly used in the production of paint strippers and glue removers, while PBT is used primarily in the production of electrical parts.
These downstream sectors are heavily reliant on the Chinese real estate sector, where sales have been slowing down since the start of this year, Fu said.
Premier Wen Jiabao said on 15 March that the
BDO sales will only overtake its production volume in 2014, added Fu of Shanxi Sanwei - the biggest BDO producer in China.
Fu forecasts that
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