Asian N-Propanol markets showed mixed trends in early June 2025, with stable conditions in India and Japan, while weak demand and falling ethylene costs led to sluggish pricing in China.
Variable upstream ethylene costs and erratic downstream paint and coatings and construction sector demand drove the N-Propanol market's price trends in the first half of June 2025 across major Asian regions, including China, Japan, South Korea, and India.
Throughout the first half of June, the Indian N-propanol market held steady thanks to the moderate demand from the downstream paint and coatings sector, which continued to operate as a result of ongoing infrastructure projects and seasonal construction activities. Gains were, however, limited because the cost pressure on manufacturers was lessened by a minor drop in upstream ethylene prices. According to reports, domestic inventories were adequate to avoid any aggressive purchasing. In the meantime, downstream industries maintained market equilibrium by demonstrating resilience, especially in housing and urban infrastructure projects.
During the first half of June, N-Propanol prices in China showed a slight decrease. Lower upstream ethylene costs amid muted global crude oil prices were the primary cause of the decline. Additionally, the downstream coatings and construction industries showed weak demand, and the real estate market was still beset by oversupply and financing problems. Furthermore, despite the relaxation in regulations, the paints and coatings sector only saw a modest recovery, which maintained the pessimistic outlook of the market as a whole. Prices of N-propanol were further driven down by a rise in domestic supply and a decline in export demand.
The price of N-Propanol remained stable in the Japanese market. A slight recovery in construction activity after the government's increased investment in public infrastructure was the main driver of this. With consistent demand from the electronics and automotive sectors, the paints and coatings industry also showed signs of improvement. Due to restricted cracker operating rates, upstream ethylene prices increased slightly on the cost front, allowing N-Propanol prices firm. However, downstream consumers' cautious purchasing habits and continued apprehension about price volatility limited gains.
N-Propanol's price trend in South Korea was comparatively stable. The price of ethylene stayed fluctuating but within a small range, giving producers of N-propanol cost stability. Demand from the downstream construction and paints industries, however, was still lacking. The paints and coatings segment reported steady but weak offtakes, while the construction sector demonstrated little activity, mostly as a result of high interest rates and a weak housing market. The market was able to avoid significant swings because imports stayed constant and inventory levels were properly controlled.
According to ChemAnalyst, the Asian N-Propanol market is expected to exhibit mixed trends amid fluctuating upstream ethylene prices and inconsistent demand from the paints, coatings, and construction sectors. Market stability in India and Japan contrasts with sluggishness in China and South Korea, suggesting a potential regional divergence ahead.
