Isobutylene

Market Intelligence Report on Isobutylene – Recent Commodity Market Dynamics

I. Price Dynamics
- Diisobutylene Price: According to ChemNet, the benchmark price for diisobutylene remained stable at RMB 15,900.00 per ton on both July 6 and July 7, 2026—unchanged from the beginning of the month and at a yearly low. The highest price recorded during the year was RMB 16,100.00 per ton; the annual median price stood at RMB 16,000.00 per ton.
- Regional Isobutylene Quotations: On June 22, 2026, the quotation for national-standard (GB) isobutylene in Hubei Province was RMB 17,500.00 per ton; on June 23, 2026, Wuhan Hengjiu Chemical Co., Ltd. quoted the same grade (GB, domestically produced) at RMB 17,500.00 per ton. On September 5, 2024, Shandong Hongyang Chemical Co., Ltd. offered isobutylene (99% purity) at RMB 90 per kilogram; meanwhile, Nantong Zhonghe Chemical New Materials Co., Ltd. quoted industrial-grade, GB-compliant isobutylene at RMB 9,750 and RMB 10,250 per ton, respectively, in Nantong City, Jiangsu Province.

II. Supply-Demand Dynamics
- Supply Side:
Global isobutylene production capacity continues to expand, with China optimizing its domestic capacity layout to enhance regional coordination—aligning supply more closely with market demand and regional economic development.
In terms of production technology, MTBE cracking remains a mainstream route despite its relatively high capital investment, owing to superior control over product purity and an overall yield exceeding 92%. Alternative processes—including C4 extraction—are also continuously evolving.
Feedstock prices for C4 cuts are highly sensitive to crude oil prices and ethylene cracker utilization rates. Between 2023 and 2025, C4 cut prices fluctuated by ±25%. Additionally, compliance costs associated with China’s “Dual Carbon” policy (carbon peak and carbon neutrality) have driven up average integrated production costs by 8–12%.
- Demand Side:
Butyl rubber represents the largest end-use segment for isobutylene, accounting for approximately 66.7% of total consumption. Growth in the automotive industry—especially rising vehicle output in emerging markets—and increasing demand for high-performance tires continue to drive butyl rubber consumption.
Polyisobutylene (PIB) exhibits steady growth in traditional applications such as lubricant additives, sealants, and adhesives. Meanwhile, demand is surging rapidly in emerging sectors including new-energy vehicles, wind power, semiconductor packaging, and biomedical applications. The global PIB market reached USD 2.45 billion in 2024 and is projected to grow to USD 2.87 billion by 2031, representing a compound annual growth rate (CAGR) of 2.3% from 2025 to 2031.
In fuel additives, increasingly stringent environmental regulations are boosting isobutylene usage in the production of methyl tert-butyl ether (MTBE) and ethyl tert-butyl ether (ETBE), enhancing fuel combustion efficiency and reducing emissions.

III. Trade Dynamics
- Global isobutylene trade is characterized by regional self-sufficiency supplemented by localized exports. The United States and Saudi Arabia serve as major exporters.
- China’s isobutylene imports totaled approximately 93,000 metric tons in 2025—a slight decline of 3.5% year-on-year—indicating that expanding domestic capacity is gradually alleviating import dependence. However, high-end grades remain reliant on imports; notably, import dependency for low-viscosity PIB specialty products reaches as high as 40%.

Analysis & Outlook
- Price Trend: Recent stability in diisobutylene pricing at historically low levels reflects a relatively balanced supply-demand relationship. Nevertheless, upward pressure may emerge from rising feedstock costs and heightened environmental compliance expenses. Future price volatility will hinge upon shifts in supply-demand fundamentals and the extent of cost pass-through.
- Supply-Demand Balance: With newly commissioned isobutylene facilities in China coming online, the global supply-demand structure is expected to shift toward a tighter equilibrium. China’s apparent consumption is forecast to reach 680,000 metric tons, marking a 6.2% year-on-year increase—further stimulating market activity.
- Industry Trends: The sector is transitioning toward technology-intensive, integrated, and high-value-added operations. Firms possessing secure feedstock access, technological leadership, and downstream integration capabilities will gain competitive advantage. Green, low-carbon process optimization has become a critical strategic priority.

Forecast
- Price Forecast: In the short term, isobutylene prices are likely to remain stable or experience modest fluctuations. Over the medium to long term, gradual price appreciation is anticipated, underpinned by sustained demand growth and escalating production costs.
- Supply-Demand Forecast: The isobutylene market is expected to evolve toward a tighter supply-demand balance. While expanding Chinese production capacity will reduce reliance on imports, demand for premium-grade products—particularly low-viscosity PIB—will sustain import needs. Meanwhile, burgeoning demand from emerging application areas will inject fresh growth momentum into the market.
- Industry Trend Forecast: Technological innovation and green development will define the industry’s future trajectory. Enterprises will intensify R&D investment to advance process optimization and product upgrading—meeting both evolving market requirements and increasingly rigorous environmental standards.