Market Intelligence Report on Isobutylene in the Commodity Market (Recent Updates)

I. Price Dynamics
- Hubei Region: On May 22, 2026, Hengjiu Chemical Co., Ltd. in Wuhan City, Hubei Province quoted isobutylene (GB standard, domestic) at RMB 10,900.00 per ton.
- Shandong Region: On May 26, 2026, Shandong Xingpeng Yongfa Chemical Co., Ltd. quoted isobutylene (99% purity) at RMB 77 per kilogram, equivalent to RMB 77,000 per ton.
- Price Trend: Recent data indicate notable price volatility. For instance, in January 2026, the isobutylene market price in Shandong Province first rose then declined; the monthly average price decreased by 1.77% month-on-month, with mainstream transaction prices ranging between RMB 7,250–7,600 per ton.

II. Supply-Demand Dynamics
- Supply Side:
- Operating load rates of certain isobutylene production facilities have recently fluctuated. For example, in December 2025, Yuhuang Chemical and Yingke Chemical successively suspended operations or reduced output of their isobutylene units, tightening supply; meanwhile, Qixiang Tengda’s isobutylene unit gradually resumed operations, shifting supply toward looseness.
- In the first half of 2026, Binhua New Materials (Shandong)’s new 100,000-ton-per-year isobutylene facility is scheduled to reach full capacity, further intensifying market competition.
- Demand Side:
- Primary downstream applications of isobutylene include butyl rubber, methyl methacrylate (MMA), polyisobutylene (PIB), antioxidants, tert-butylamine, and diisobutylene—among other fine chemical products.
- In 2025, China’s isobutylene consumption was distributed as follows: 35% for butyl rubber production, 25% for MMA, and 13% for PIB.
- Recently, butyl rubber market prices remained relatively stable: conventional butyl rubber’s mainstream indicative transaction price in the East China market ranged from RMB 13,500–15,000 per ton; brominated butyl rubber’s mainstream indicative transaction price in the same region stood at RMB 15,300–16,000 per ton.

III. Related Product Price Dynamics
- Diisobutylene: As of May 25, 2026, the benchmark price for diisobutylene published by Business Network (Shengyishe) stood at RMB 15,900.00 per ton—unchanged from the beginning of the month and at a yearly low.

Analysis & Assessment

I. Reasons Behind Price Volatility
- Supply-Side Factors: Fluctuations in operating load rates of isobutylene production units directly affect market supply volume and thus prices. For example, plant shutdowns or output reductions tighten supply and push prices upward, while resumption of operations increases supply and exerts downward pressure on prices.
- Demand-Side Factors: Changes in downstream industry demand significantly influence isobutylene pricing. Increased demand—for instance, from butyl rubber—tends to drive up isobutylene prices.
- Prices of Related Products: Price fluctuations in related derivatives—such as diisobutylene—may also impact isobutylene pricing.

II. Current Supply-Demand Landscape
- Supply Looseness: With the commissioning of new facilities—including Binhua New Materials’ plant—overall isobutylene supply will increase further, heightening competitive pressures across the market.
- Steady Demand Growth: Stable and growing demand from downstream sectors—including butyl rubber and MMA—provides ongoing support to the isobutylene market.

Forecast

I. Price Outlook
- Short-Term: Isobutylene prices are expected to remain relatively stable or exhibit modest fluctuations in the near term. Ongoing impacts from newly commissioned facilities and variable operating load rates will continue influencing prices; however, steady downstream demand growth will provide a degree of price support.
- Long-Term: As downstream demand continues expanding and supply-side capacity is progressively released, the isobutylene market’s supply-demand structure is expected to trend toward equilibrium. Nevertheless, intensifying competition may amplify price volatility, requiring enterprises to closely monitor market developments and adjust production planning and sales strategies accordingly.

II. Market Trends
- Shift Toward High-End and Fine Chemical Applications: Growing demand from downstream industries for high-performance materials will propel the isobutylene market toward higher value-added, more specialized applications. Enterprises must strengthen R&D investment, enhance product quality and performance, and better align offerings with evolving market needs.
- Industrial Chain Integration and Synergy: Companies possessing C4 feedstock resources are increasingly inclined to extend vertically into downstream segments—establishing integrated production facilities spanning isobutylene, butyl rubber, MMA, PIB, and beyond—to secure supply chains and reduce overall operational costs.