The global 1,4 Butanediol (BDO) market came under increasing pressure in mid-August 2025 as supply-driven demand continued to weaken and downstream activity remained soft. China is leading the decline as traders were cautious and limited their amount of spot purchases. Recently higher operating rates in sectors such as PTMEG and PBT forced supply up, but demand continued to lag. Logistical delays and softness in feedstock costs improved bearish sentiment. However, the Germany and U.S. markets remained stable, buoyed by steady production and exporter discipline. There remains a distinct expectation for stabilization in the near-term, encouraged by seasonal pre-stocking and strengthened demand from downstream inquiries, but concerns still remain about sufficient macro softness and an overhang on inventory.
