Stable n-Propanol market in South Korea amid moderate demand-supply dynamics

In March 2024, the n-Propanol price trend remained stable as producers kept their quotations unchanged in South Korea due to moderate demand-supply dynamics. The availability of n-Propanol stocks was adequate to fulfil the market demand amid afflicted production rates and sluggish demand from buyers. Meanwhile, the consumer product offtakes were moderate to low from the buyers amid a rise in inflation in the country.

As per the sources, in February 2024, South Korea's Manufacturing Purchasing Manager's Index declined marginally compared to the previous month but remained above 50, indicating a slowdown in the expansion of manufacturing sector activities. The production rates were affected by the inconsistent supplies of feedstock Ethylene due to a shift in upstream Crude Oil prices because of the extension of OPEC+ Crude Oil production cuts till mid-2024 and moderate demand for Ethylene amid rising inflation in the country. However, it had an inconsiderable impact on the production costs of n-Propanol. Furthermore, n-propanol offtakes were moderately low from buyers due to a declining trend in consumer products in the retail market.

Meanwhile, the new orders were moderately low in the country due to cautious buying activities in the domestic market because of a 0.5% rise in the Consumer Price Index during February 2024. Consequently, the n-Propanol orders dropped by the food ink solvent manufacturers amid reduced consumption rates amid an increase of 0.3% in food price inflation during the past month. Similarly, n-propanol inquiries remained moderately low from agrochemical industries during the mid-season of Barley and Wheat plantations. On the contrary, the orders were consistent from the beauty and wellness industries. Moreover, due to the upcoming spring festival in importing countries and the expected rise in demand for cleaning agents, the demand for n-Propanol increased from regional importers. Furthermore, the inquiries were moderate from the Pharma sector.

According to ChemAnalyst data sources, the n-Propanol FOB Busan quotations in South Korea witnessed USD 920/MT at the end of 3rd week of March 2024.

As per the assessment, the n-Propanol orders will increase from international buyers due to firm demand for products in cleaning agents and personal care product manufacturers. At the same time, the anticipated increase in feedstock Ethylene prices amid moderate availability of upstream Crude Oil due to production cuts by OPEC+ will raise the cost support on production costs. However, the producers may increase their production rates in the country at the beginning of Q2 2024 as the manufacturing activities usually remain firm during the second quarter due to high consumption and decline in energy costs, and the n-Propanol supplies may remain moderate in the regional market.