China octanol designed capacity to reach 4,685,000 tonnes in 2026

China faces a growing octanol supply surplus in 2026, with capacity set to rise by 960,000 tonnes to 4.685 million tonnes (OilChem). This overcapacity will intensify competition, squeeze producer profits, and pressure operating rates. The surplus is driven by significant new capacity additions that outpace limited downstream demand growth. Key metrics to watch are the industry operating rate and export volumes as markets adjust.

According to OilChem data, in 2026, China's new octanol production capacity is projected to be 960,000 tonnes, with the total designed capacity reaching 4,685,000 tonnes. China Octanol Supply & Demand, 2025-2026E (Unit: '000 t/y, '000 tonnes) Source: OilChem In 2026, China's octanol capacity is expected to increase by 960,000 tonnes to 4,685,000