Supply-side constraints reinforced the bullish sentiment. Formosa Plastics Corporation, a key regional producer with an n-Butanol nameplate capacity of xxx,xxx MT/year at its Mai Liao, Taiwan facility, initiated a maintenance turnaround in early June, with operations expected to remain offline for approximately xx days. The ensuing supply disruption significantly curtailed regional availability, tightening cargo flows to major consumption centers such as China and Japan.
In China, production costs for n-Butanol marched higher amidst a xx increase in Propylene prices during late June, despite supply of Propylene improving, as indicated by the fact that PDH (Propane Dehydrogenation) unit operating rates rising to xxx, up x.xx on a month-on-month basis. However, elevated regional demand for Propylene outpaced the supply recovery, resulting in higher production costs for downstream oxo-alcohol production, including n-Butanol.
Within the broader oxo-alcohol segment, n-Butanol supply was noted to be...
