How is the BDO oversupply affecting downstream specialty chemicals like 1,4-butanediyl bismethanethiosulfonate?

How is the BDO oversupply affecting downstream specialty chemicals like 1,4-butanediyl bismethanethiosulfonate?
China's 1,4-butanediol (BDO) market has entered a severe downturn, with capacity surging from 3.5 million tons in 2023 to 5.79 million tons in 2025, while operating rates fell to just 53.2%. This oversupply has driven domestic BDO prices down to around 7,890 yuan per ton, pushing the entire industry into losses. For downstream derivatives like 1,4-butanediyl bismethanethiosulfonate, cheaper BDO feedstock could lower production costs, but the weak profitability upstream may also reduce investment in high-value downstream applications. Export volumes dropped 40% in 2025 to 180,000 tons, reflecting softer global demand, while imports fell 60% to 36,400 tons, indicating self-sufficiency is rising. The market remains concentrated, with the top eight producers controlling 51% of capacity.