Consistent Demand Spurs Rise in Asian n-Propanol Prices

In the Asian region, the n-Propanol prices witnessed an increment of almost 2% in Southeast Asia due to firm demand from regional importers and reduced trading activities in the market during the second half of February 2024. The regional n-Propanol market in China was closed due to the Lunar New Year holidays. At the same time, the demand for n-Propanol was consistent from the cosmetics and personal care product manufacturers. At the same time, the orders for solvent were consistent from cleaning agent manufacturers amid the moderation in stocking and consumption from the household sector due to festivals in the regional market. Meanwhile, inquiries remained moderate from the Pharma Sector.

Moreover, the cost support increased from feedstock Ethylene as the production rates were affected due to tight availability due to affected and delayed supplies of Crude Oil from Middle East exporters. The upstream Crude Oil supplies were delayed from exporters amid increased ship traffic at ship routes due to attacks on the vessels and Oil tankers passing through the Red Sea in the Middle Eastern region. It stressed the availability of feedstock supplies, and the production rates of n-Propanol remained moderately low.

However, at the beginning of the month, n-Propanol prices rolled over by producers in South Korea amid moderate demand-supply dynamics. The previous stocks were adequately available in the market amid consistent offtakes from domestic buyers. The stocking activities declined from the regional buyers amid the firm availability of supplies in the regional market and stable offtakes from the buyers. Meanwhile, the operating rates were reduced before the upcoming Seollal Holiday in South Korea and the Lunar New Year holiday in China.

Moreover, during the mid-month, the demand was moderate from the buyers and importers as stocking practices declined as the buyers and suppliers were preparing for the Lunar New Year holidays in South Korea and China.

According to the ChemAnalyst database, the n-Propanol FOB Busan quotations in South Korea witnessed USD 920/MT at the end of February 2024.

As per the estimation, the n-Propanol prices will increase during the upcoming weeks in the Asian market. The cost support will likely remain firm from upstream Ethylene, and the production and supply rates of n-Propanol might remain tight towards the end of Q1 of 2024 amid the limited availability of feedstock supplies. Additionally, the demand for n-Propanol will increase from regional buyers like India due to the firm demand for personal care products and cleaning agents from the household sector during the festival around the spring season.