Tertiary Butyl Alcohol Prices Ease in Mid-June as Supply Outpaces Demand

Tertiary Butyl Alcohol Prices Ease in Mid-June as Supply Outpaces Demand

Alexander Hamilton 18-Jun-2025

In mid-June 2025, Germany’s tertiary butyl alcohol (TBA) market saw a marginal dip after holding steady for several weeks. Supply pressures eased slightly as falling crude oil prices worked their way through the system, helping producers lower prices a bit while still protecting margins. Imports provided some temporary relief to the still-tight isobutylene supply. On the demand side, buyers across key sectors like solvents, cosmetics, and pharmaceuticals remained cautious, sticking to small, immediate orders amid ongoing economic uncertainty. Even seasonal boosts in coatings and fuel blending offered little extra pull. For now, TBA prices are expected to stay fairly stable.

The tertiary butyl alcohol market in Germany softened in mid-June 2025, as supply conditions eased and buyers continued to step carefully. After several weeks of stable pricing, a slight decline emerged, reflecting the growing gap between consistent but cautious demand and slowly improving supply availability. Even though the supply of isobutylene, the key raw material for tertiary butyl alcohol, remained tight, falling crude oil and feedstock prices provided some relief to producers. Meanwhile, buyers across major sectors stayed firmly in wait-and-see mode, keeping purchases limited to immediate operational needs.

For weeks, the scenario in the tertiary butyl alcohol market has been about tight isobutylene supply. Steam cracker operators in Europe kept cutting back on C4 production to protect margins on ethylene and propylene, restricting the availability of crude C4 needed to make isobutylene. Yet in recent weeks, things shifted slightly. Imports offered some temporary relief, while falling Brent crude prices since mid-April began to filter down the value chain. With cheaper naphtha and C4 raffinate, tertiary butyl alcohol producers found some room to adjust offers downward while still protecting their margins.

Despite these supply-side developments, demand for tertiary butyl alcohol remained stuck in familiar territory—steady, but far from strong. Buyers in the solvents, cosmetics, and pharmaceutical industries continued to play it safe, sticking to small, just-in-time orders. Many industrial players were still dealing with subdued order books and broader economic uncertainty, especially as Germany’s private sector confidence dipped further in recent months. Even in the automotive and construction coatings sectors, where a seasonal lift might typically be expected by now, activity remained lackluxster, offering little additional pull for tertiary butyl alcohol.

The fuel sector, often a source of seasonal support for tertiary butyl alcohol, also provided only limited help. Although MTBE blending spiked briefly during the May switch to summer-grade gasoline in the ARA hub, inland German gasoline demand remained soft. Ongoing isobutylene supply constraints continued to cap local MTBE output, limiting the knock-on impact for tertiary butyl alcohol consumption.

Looking forward, according to the ChemAnalyst database, the sentiments in the tertiary butyl alcohol market remain cautiously stable. While structural tightness in isobutylene supply is likely to persist due to ongoing refinery and steam cracker adjustments across Europe, the recent easing in crude oil and feedstock costs offers some balance to the TBA market. As per the market participants, tertiary butyl alcohol prices are expected to hover around current levels in the near term.

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