Midway into August 2025, n-Butanol prices remained under pressure across the Asian markets as suppliers across China attempted to maintain lower inventories at their warehouses. Major Chinese suppliers and producers of n-Butanol were heard to have been actively reducing prices and offloading across the broader Southeast Asian markets. Supply remained ample amidst weak demand conditions from the primary paints and coating sector during the monsoon season which resulted in prices travelling southwards. India however, remained an outlier with prices witnessing an increasing due to BPCL having not returned to production since the electrical fire at its Kochi refinery during early July, which resulted in in Indian sellers not agreeing to lower prices.
During mid-August 2025, n-Butanol prices across the Asian market continued to witness a bearish market situation, as ample supplies sustained improved spot availability. Despite a reduction in operating rates, spot availability remained ample, as domestic n-Butanol suppliers across the Shandong region aimed to maintain low inventory levels in warehouses. Weak demand conditions from the primary paints and coating industries continued to persist across the broader Asian market amidst the ongoing monsoon season, which continued to exert a bearish pressure on prices.
Production costs for n-Butanol eased in line with a slight decline in feedstock Propylene (Chemical Grade) prices, which maintained a degree of bearishness in the market. Supply of n-Butanol remained adequate as suppliers actively liquidated inventories, with price reductions in the reported from suppliers and producers across the Shandong region, leading to the circulation of lower-priced inventories across the Chinese market. In Shandong, n-Butanol producers continued to move stocks at discounted prices, even as operating rates fell mid-way through August. Production constraints were linked to reduced Propylene output, with PDH plant operating rates at 1.22% decline on month-over-month basis, curtailing feedstock availability for n-Butanol production.
Suppliers in the broader Shandong region were also reported to have offloaded excess stock at lower prices across the broader Asian market with suppliers reporting having exported to buyers in India and Japan. In June 2025, China exported 1,331.55 tons of n-Butanol, a sharp increase of 919.89 tons or 223.46% from the previous month. This surge in exports continued to circulate within the broader Asian market, sustaining bearish pressure across Southeast Asia. The situation was further supported by a 3% drop in intra-Asia freight charges, making regional supplies more competitive.
On the other hand, the prices of n-butanol surged across the Indian market. Major producer BPCL was reported to have increased its n-Butanol price by INR 600/MT for deliveries from August 1, 2025. Further, production had not yet resumed at its Kochi refinery following the electrical fire earlier in July, leading to a marginal shortfall in domestic supply. Despite this, demand for n-Butanol in India remained subdued due to weak offtake from the paints and coatings sectors, with buyers showing resistance to higher prices.
As anticipated by ChemAnalyst, expectations point towards further moderation in n-Butanol prices across Asia, amidst persistent weak demand from the paints and coatings industries during the peak monsoon season likely to maintain downward pressure on the overall market. Weak demand is also furthermore more expected from the plasticizer sector as the demand from the automotive parts sector remains under threat from the tariff conditions which is expected to result in processors running plants at reduced capacities resulting as per requirement in the procurement activities.
