During early June 2025, n-Butanol prices across the US market followed a bearish trajectory amid persistently ample supply conditions. Demand remained largely sluggish, despite some improvement observed in the construction sector. Suppliers primarily focused on inventory drawdowns rather than seeking active procurement opportunities.

A major factor contributing to the subdued demand was the ongoing weakness in the automotive industry, which continued to exert downward pressure on the prices of n-Butanol. US suppliers were reportedly offloading existing material post Memorial Day holidays, adding to the oversupply situation across the region leading to improved material availability during the week thus keeping the bearish pressure in the prices intact in the market.

The demand weakness for n-Butanol extended beyond the domestic market, with sluggish conditions also reported in key export destinations such as Mexico and Canada. This trend was reinforced by a decline in chemical railcar loading, which further pressured export prices for n-Butanol.

Market participants noted only limited signs of market reactivation, with most inquiries originating from distributors rather than downstream consumers in the paints, coatings, or plasticizer sectors, thus keeping overall market sentiment firmly bearish.

Sluggish export conditions were further highlighted by a decline in outbound shipments to major trading partners, particularly Mexico and Canada, which fell by approximately 2.1%. According to data from the American Chemistry Council, total export-related railcar movements declined to 32,383 units as of June 6, 2025, which further kept export prices under pressure.

Across the domestic market, demand conditions for n-Butanol remained predominantly weak. Within the construction sector, indicators stayed broadly muted. Although US housing starts rose by 1.6% month-on-month in April 2025 to 1.36 million units, this marginal growth failed to offset the sharp 11% contraction seen in March. Furthermore, overall construction spending declined by 0.4% during the same period, further dampening demand for n-Butanol from the paints and coatings segment.

Meanwhile, the automotive sector continued to struggle. US vehicle sales fell by 9.3% month-on-month in May, dropping to a seasonally adjusted annual rate of 15.7 million units—below the expected figure of 16.0 million units. This decline was largely attributed to front-loaded purchases in March and April, as buyers rushed orders ahead of the April 3rd implementation of automotive tariffs. The resulting depletion of dealership inventories led to softer vehicle sales in May, subsequently curbing n-Butanol consumption in the plasticizer segment and keeping demand subdued.

As of the present, n-Butanol prices were reported to have declined by approximately 2%, despite stable prices for feedstock Propylene (Refinery Grade), which remained unchanged due to ample availability and loose supply fundamentals.

As per anticipation, n-Butanol prices are expected to remain under further pressure throughout the remainder of June 2025. Market participants indicated that demand for n-Butanol from the construction and automotive sectors is unlikely to recover significantly under the current tariff regime. Sentiment suggests that only the removal of these tariffs could prompt a notable shift in current market dynamics.