For the Quarter Ending September 2025
North America
• In the United States, the Butyl Diglycol Price Index rose quarter-over-quarter in Q3 2025, driven by elevated production costs and tariffs.
• Butyl Diglycol production costs increased due to a 2.6% year-over-year rise in PPI in August 2025 and elevated Ethylene Oxide costs.
• Industrial production grew only 0.1% year-over-year in September 2025, indicating subdued demand for industrial chemicals.
• Robust retail sales, up 5.42% year-over-year in September 2025, supported Butyl Diglycol demand in consumer-facing applications.
• US automotive demand strengthened in Q3 2025, boosting Butyl Diglycol consumption in coatings.
• Residential construction spending surged in August 2025, positively impacting Butyl Diglycol demand for architectural coatings.
• US tariffs exacerbated the petrochemical sector in Q3 2025, increasing costs for Butyl Diglycol and downstream products.
• The 3.0% year-over-year CPI increase in September 2025 indicated general inflation, impacting Butyl Diglycol production and end-use markets.
• Consumer confidence declined to 94.2 in September 2025, alongside a 4.3% unemployment rate, tempering discretionary spending.
Why did the price of Butyl Diglycol change in September 2025 in North America?
• Elevated Ethylene Oxide costs and a 2.6% PPI increase in August 2025 raised Butyl Diglycol production expenses.
• US tariffs in Q3 2025 increased costs for petrochemicals and downstream products.
• Mixed demand signals, including strong retail sales but subdued industrial production, influenced Butyl Diglycol pricing.
APAC
• In China, the Butyl Diglycol Price Index fell quarter-over-quarter, driven by weak consumer and industrial demand.
• Butyl Diglycol production costs faced upward pressure from firming propylene feedstock in August 2025.
• Demand was supported by strengthened automotive sales and 3.0% retail sales growth in September 2025.
• Overall industrial activity contracted in September 2025, indicated by the Manufacturing Index, dampening demand.
• Consumer confidence remained pessimistic at 89.6 in September 2025, suggesting reduced discretionary spending.
• The -0.3% year-over-year CPI in September 2025 reflected deflationary pressures, limiting pricing power.
• Despite a -2.3% year-over-year PPI in September 2025, manufacturing input costs remained elevated, squeezing margins.
• Industrial production expanded by 6.5% year-over-year in September 2025, providing underlying strength to demand.
• Raw material inventory decline narrowed in September 2025; propylene import volumes weakened.
Why did the price of Butyl Diglycol change in September 2025 in APAC?
• Weak consumer demand, evidenced by -0.3% year-over-year CPI in September 2025, reduced pricing power.
• Contracting Manufacturing Index and -2.3% year-over-year PPI in September 2025 challenged industrial demand.
• Elevated manufacturing input costs in August 2025, including firming propylene feedstock, pressured production economics.
Europe
• In Germany, the Butyl Diglycol Price Index fell in Q3 2025, due to weak industrial demand.
• Butyl Diglycol production costs eased from lower producer prices, down 1.7% in September 2025.
• Overall chemical demand remained weak in Q3 2025; industrial production fell 1.0% in September.
• Manufacturing Index contracted in Q3 2025, signaling slower industrial activity, reducing BDG demand.
• CPI rose 2.4% in September; retail sales increased 0.2%, indicating mixed consumer signals.
• Unemployment stable at 6.3% in September 2025, supporting consistent consumer income and spending.
• Automotive coatings demand rebounded sharply in September 2025, supporting BDG consumption.
• Construction sector activity contracted in Q3 2025, contributing to weak BDG demand.
• Ample inventories of key feedstocks (ethylene, n-butanol) observed in Germany in Q3.
• German chemical exports, including n-butanol, faced competitiveness challenges in Q3 2025.
Why did the price of Butyl Diglycol change in September 2025 in Europe?
• Weak industrial demand; Manufacturing Index contracted, industrial production fell 1.0% in September.
• Lower producer prices, down 1.7% in September 2025, reduced Butyl Diglycol production costs.
• Feedstock costs fluctuated; naphtha and n-butanol rose in September, ethylene softened in Q3.
