The European n-Butanol market continued to exhibit price stability entering August 2025, even as persistent demand weakness exerted downward pressure on overall market sentiment. Participants across the broader oxo-alcohol segment, including n-Butanol, reported muted activity levels, with the seasonal summer lull leading to thin discussions and limited spot market engagement.
In the face of persistent macroeconomic challenges and geopolitical uncertainty, structural demand remained generally weak, especially in the downstream plastics and construction industries, both of which continued to perform poorly. The European n-Butanol market received little assistance from this muted consumption outlook, which limited the likelihood of a short-term price recovery.
Sellers of n-Butanol were able to keep prices mostly steady throughout July and the first part of August in spite of this pessimistic outlook. Major volatility were avoided due to seller-side restriction and the lack of active spot market involvement. In comparison to the broader oxo-alcohol markets, other oxo-alcohols such as Iso-Butanol and 2-Ethylhexanol (2-EH) witnessed price softening, as ample supplies continued to outweigh demand.
Adding to the pressure on n-Butanol, market participants reported limited arbitrage opportunities both within and outside Europe. Prime buyers in Turkey were seen favoring U.S.- and Asian-origin cargoes, which remained more competitively priced than European-origin material. This trend continued to erode the export competitiveness of European n-Butanol, contributing to sustained bearishness.
Supply remained ample across key European ports, further weighing on sentiment in the n-Butanol market. Port congestion, particularly at Hamburg, continued to exacerbate logistical delays with berthing lineups being full at all terminals, and wait times estimated of up to two days at CTB and additional restrictions at CTT for off-window calls. Labour shortages, expected to persist through September, further impacted throughput and delivery schedules resulting in delays for outbound shipments.
Softening feedstock Propylene prices also contributed to the downward pull with August contract prices for propylene, a key feedstock for n-Butanol production, settled approximately EUR 10/MT lower month-on-month, with spot prices declining by nearly 6% at the start of August. This cost relief reinforced the ability of n-Butanol sellers to hold prices steady despite broader market softness.
Although overall supply remained sufficient, producers across the oxo-alcohol value chain reportedly maintained reduced operating rates to help balance the market. Market rumors also suggested that a major n-Butanol producer in Europe was preparing for a maintenance turnaround scheduled for mid-August 2025, which could provide slight tightening in supply.
On the demand side, downstream purchasers in the plasticiser and paint and coating industries are still being cautious and prefer inventory reductions to large purchases. Furthermore, the market for n-Butanol continued to stagnate as a result of many market participants delaying purchases due to uncertainties around future tariff regimes.
As per anticipations the European n-Butanol market is expected to maintain overall stability throughout August. With reduced production activity and sellers managing output in line with seasonal patterns, prices are anticipated to remain steady, barring any unforeseen supply disruptions or regulatory changes.
