For the Quarter Ending March 2025
North America
In Q1 2025, the U.S. Butyl Glycol market saw a steady upward price trend, driven by robust demand from key industries such as paints, coatings, and automotive manufacturing. These sectors were supported by ongoing infrastructure projects and the overall recovery of industrial activities in the U.S. Despite these positive demand factors, the market was pressured by rising production costs, mainly due to increasing feedstock prices, particularly ethylene oxide, which exerted upward pressure on Butyl Glycol prices throughout the quarter.
Supply-side dynamics played a significant role in shaping the market conditions. Although there were challenges related to feedstock availability and logistical constraints, production facilities operated at steady capacity levels. Some plants underwent scheduled maintenance shutdowns, further tightening supply, which, combined with the increased demand from industrial applications, resulted in a stable yet rising price trajectory during the quarter.
By the end of Q1 2025, the Butyl Glycol market in the U.S. had reached a relatively stable position. Prices had risen incrementally throughout the quarter, reflecting the ongoing balance of strong industrial demand and constrained supply, exacerbated by the higher costs of key raw materials. This set the tone for cautious optimism going into Q2, with a market that remained resilient despite external pressures.
APAC
In Q1 2025, the Malaysian Butyl Glycol market saw a mild upward trend in pricing, increasing by approximately 0.8% in January. This was driven by supply constraints and rising production costs, especially due to higher ethylene oxide prices. Demand remained stable in the paints and coatings sector, primarily driven by infrastructure projects and industrial investments. However, the automotive sector saw a temporary slowdown in coatings demand due to weaker vehicle sales, with a 38.7% drop in sales in January, impacting the overall demand for Butyl Glycol.
By February, the market showed modest improvement, with prices increasing by around 0.8%. Manufacturing activity saw an uptick, but weaker export orders limited broader market growth. The paints and coatings sector continued to experience steady demand, but the shift towards low-VOC and water-based formulations created challenges for traditional solvent use. The automotive sector showed signs of recovery, with some seasonal demand providing short-term relief, though overall sales were still subdued.
By the end of the quarter in March, the market stabilized with a slight 1.3% decline in prices. Improved feedstock availability from the ethylene oxide market, coupled with steady manufacturing output, allowed for balanced supply conditions. Demand in the automotive and paints sectors remained positive, but cautious buying behaviour kept the market in a stable condition. Overall, Q1 2025 saw steady demand and gradual price adjustments across key sectors.
Europe
In Q1 2025, the German Butyl Glycol market saw a significant decline in prices, with a 2.2% decrease in January. This drop was driven by weak demand from key sectors like automotive and paints and coatings, which faced challenges from high inflation, rising material costs, and economic uncertainty. Despite a reduction in ethylene oxide prices easing some production costs, these broader market constraints led to reduced demand and a cautious purchasing attitude across industries.
The downward trend continued in February, with a further 4.0% drop in prices. This was largely due to ongoing softness in the automotive sector and the shift towards sustainable, low-VOC alternatives in the paints and coatings market. Regulatory pressures, alongside the transition to greener solutions, further reduced the demand for traditional solvents. As a result, manufacturers adjusted their strategies, reducing production and procurement to align with the weaker demand.
Towards the end of the quarter, the market showed signs of stabilization, with a slight 1.8% increase in prices. This uptick was attributed to logistical challenges at the Port of Hamburg, raising concerns about potential supply disruptions. A rebound in the automotive sector, with a 24.6% increase in vehicle sales, also contributed to a modest recovery in demand for coatings and adhesives, though uncertainty in the broader market remained.
MEA
In Q1 2025, the price trend of Butyl Glycol in Saudi Arabia showed moderate fluctuations driven by strong industrial demand and supply-side dynamics. In January, prices increased by 1.0%, primarily due to robust demand from key sectors like paints, coatings, and automotive, supported by Saudi Arabia’s Vision 2030. The growing non-oil economy and infrastructure projects fuelled consumption, while rising ethylene oxide prices put upward pressure on production costs, contributing to the price hike.
The trend continued in February, with another 1.0% increase in prices. Stable industrial activity and sustained demand in the paints and coatings sector, driven by ongoing infrastructure development, supported the price increase. The automotive sector, particularly electric vehicle production, further contributed to consumption growth. However, environmental regulations promoting eco-friendly alternatives presented long-term uncertainties for traditional solvents, adding complexity to the market.
By March, the market shifted, with a 1.0% decline in prices. This drop was mainly due to oversupply, with ample domestic production and strategic stockpiling outweighing the steady demand. Despite continued strength in the local construction and automotive sectors, weak export demand contributed to an excess supply situation. This price correction reflects a balanced market where supply growth outpaced demand, though long-term demand remains positive driven by ongoing industrial and economic developments.
For the Quarter Ending December 2024
North America
In Q4 2024, the Butyl Glycol market in the North American region exhibited a steady yet subdued performance, reflecting weak demand across major downstream sectors. The market faced headwinds due to softening consumption in key industries such as paints and coatings, automotive, and construction. The seasonal slowdown in construction activities, combined with declining production volumes in the automotive sector, weighed heavily on the demand for Butyl Glycol, a critical solvent in these industries. Additionally, high inventory levels from earlier in the year further limited the need for new procurement, contributing to a cautious purchasing environment.
On the supply side, North American production remained stable throughout the quarter, with manufacturers maintaining consistent operational rates. Feedstock prices, particularly ethylene oxide, remained relatively stable, which helped control production costs. However, the absence of significant export demand exacerbated the oversupply situation, creating further downward pressure on market dynamics.
Although the paints and coatings industry experienced moderate activity driven by residential maintenance projects, the overall market sentiment remained lackluster. With slower economic growth and limited industrial activity in the region, market participants adopted a wait-and-see approach. The quarter concluded with the North American Butyl Glycol market facing a delicate balance between steady supply and weaker downstream demand.
APAC
In Q4 2024, the South Korean Butyl Glycol market experienced a quarter-on-quarter decline of 2.9%, driven by weak demand from key downstream industries such as paints and coatings and the automotive sector. Domestic demand for paints and coatings remained subdued, reflecting low consumer confidence and competitive pricing pressures, while the automotive sector faced reduced production and declining sales. Export demand also softened, highlighting a broader downturn in consumer confidence across the APAC region. On the supply side, declining feedstock prices, particularly Ethylene Oxide, reduced production costs for manufacturers. However, the resulting cost savings did not stimulate market activity, as procurement remained demand-driven with sufficient inventories in place. Increased competition among suppliers further pressured prices. While Asia's paints and coatings sector demonstrated long-term growth potential through overseas expansion and innovation, domestic demand in South Korea lagged during this period. The combined effects of weakened downstream demand, subdued export activity, and reduced production costs created a challenging market environment for Butyl Glycol in South Korea throughout Q4 2024.
Europe
In Q4 2024, the German Butyl Glycol market experienced a quarter-on-quarter decline of 1.2%, driven by subdued demand from key downstream sectors such as automotive and construction, alongside fluctuating dynamics in the paints and coatings industry. The automotive sector, facing declining new passenger car registrations and weakened production activity, contributed significantly to the sluggish market conditions. Similarly, the construction sector continued to grapple with challenges, limiting its demand for Butyl Glycol. On the other hand, the paints and coatings sector showed some resilience, particularly in December, when strategic measures by major industry players and a recovery in demand bolstered market activity. Companies like AkzoNobel and BASF implemented cost-cutting initiatives and portfolio optimizations to enhance competitiveness amidst economic uncertainties. These efforts supported a modest recovery in the sector, driving demand for Butyl Glycol in Germany during the latter part of the quarter. Supply dynamics remained steady, with sufficient availability of Butyl Glycol despite reduced production activities. The interplay of controlled production, improving demand in the coatings sector, and persistent challenges in other industries shaped the overall bearish market sentiment in Germany during Q4 2024.
MEA
In Q4 2024, the Butyl Glycol market in Saudi Arabia witnessed a significant quarter-on-quarter decline of 17.8%, driven by high inventory levels, oversupply, and subdued international demand. While domestic demand remained steady, especially from the construction and automotive sectors, the preference for environmentally friendly alternatives—aligned with Saudi Arabia’s Vision 2030 sustainability goals—curbed consumption of volatile organic compounds (VOCs) like Butyl Glycol. Supply dynamics were affected by constrained production due to adverse weather conditions, yet inventory surpluses continued to exert downward pressure on prices. The paints and coatings sector benefited from robust infrastructure projects, though companies emphasized sustainable innovations and reduced VOC usage. Global players like AkzoNobel and BASF explored opportunities in the region, highlighting its growing importance in the global coatings market. Meanwhile, the automotive sector, bolstered by initiatives such as Lucid Motors joining Saudi Arabia’s "Made in Saudi" program, showcased consistent demand for Butyl Glycol despite broader market challenges. Overall, the bearish sentiment persisted, reflecting the interplay of oversupply, weak international demand, and a structural shift toward sustainability.
For the Quarter Ending September 2024
North America
In the North American region, the market continued to grow, driven by demand from the paints and coatings industry. Butyl Glycol is widely used as a solvent in these products due to its low volatility and excellent solvency properties. Prices remained relatively stable, with slight fluctuations due to changes in raw material costs, particularly n-butanol and ethylene oxide. The demand for Butyl Glycol was strong, particularly from the textile and fabric industry.
It is used in the production of polyester fibers for clothing, carpets, upholstery, and other products. The supply chain remained robust, with key producers like Dow Chemical Company, Sadara Chemical Company, and BASF SE maintaining steady production levels.
There was increased focus on environmental regulations, with manufacturers investing in more sustainable production processes to reduce emissions and waste.
APAC
The third quarter of 2024 for Butyl Glycol in the APAC region witnessed a decline in prices, with significant factors influencing the market. The bearish trend was mainly driven by low demand from downstream industries, sluggish industrial activities, and decreased trading activities. Supply remained moderate to high, with stable production levels and efficient supply chains. Demand was moderate, with fluctuations observed in key sectors like automotive and packaging. India experienced the most price changes, reflecting overall trends in the region. The -6% decrease from the previous quarter and the -5% difference between the first and second half of the quarter highlighted the downward trajectory. Despite stable feedstock prices, overall market conditions remained negative, leading to the quarter-ending price of USD 115500/MT of Ethylene Glycol Monobutyl Ether CFR JNPT in India. Plant shutdowns further disrupted the market during the quarter, contributing to the challenging pricing environment.
Europe
In Q3 2024, the pricing environment for Butyl Glycol in Europe remained stable, reflecting consistent market conditions. Significant factors influencing market prices included stable supply and demand dynamics, moderate demand from various industries such as automotive, construction, and electronics, and stable production levels. The pricing trend was also influenced by steady raw material costs and efficient supply chain management. In Germany, which experienced the most significant price changes, the market followed a similar stable trajectory. The quarter saw a correlation in price changes, with a recorded -3% decrease from the previous quarter. However, the price remained relatively unchanged between the first and second half of the quarter. Despite fluctuations in global markets, the pricing environment in Germany remained steady, culminating in a quarter-ending price of USD 1575/MT of Ethylene Glycol Monobutyl Ether FOB Hamburg. Throughout the quarter, no major disruptions or plant shutdowns were reported, further contributing to the stable pricing sentiment in the region.
MEA
The third quarter of 2024 for Butyl Glycol in the MEA region witnessed a notable decline in prices, particularly in Saudi Arabia, where the market experienced the most significant price changes. Several factors contributed to this downward trend. The overall bearish market sentiment was influenced by a combination of moderate supply levels, low demand from key industries like paints and coatings, and increased government focus on environmentally sustainable alternatives. Additionally, stable production costs and weakened global demand played a role in the pricing dynamics. In Saudi Arabia specifically, the market faced challenges with reduced demand from downstream sectors, despite improvements in the manufacturing industry. The correlation between decreased industrial activities during the summer months and lower demand for Butyl Glycol was evident. Seasonal fluctuations and high inventory levels also impacted pricing trends. The quarter concluded with a price of USD 1320/MT for Ethylene Glycol Monobutyl Ether FOB Jeddah, reflecting the overall negative pricing environment that prevailed throughout the quarter. Plant shutdowns did not significantly affect the market during this period.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Butyl Glycol market exhibited a largely bullish trend, driven by several converging factors despite some counteracting pressures. The primary influence on the upward price movement was the increase in the cost of Ethylene Oxide, a crucial secondary feedstock for Butyl Glycol production. This rise came despite a noticeable 3.2% drop in the price of n-Butanol, a key feedstock, which typically influences Butyl Glycol pricing.
The US Ethylene Oxide market played a significant role in this dynamic. The market was affected by disruptions in the supply of upstream Ethylene, which were linked to maintenance turnarounds at production facilities. These disruptions, combined with steady demand from downstream industries such as Mono ethylene Glycol and Ethoxylates, helped sustain the production costs of Butyl Glycol. Seasonal patterns in these downstream sectors also contributed to maintaining demand levels, thereby supporting higher production costs.
However, the overall bullish market trend was mitigated by several countervailing factors. Demand from the construction-related paints and coatings sectors remained subdued, which put downward pressure on Butyl Glycol prices. The construction industry, in particular, faced challenges such as reduced renovation activities and project delays, leading to a weaker demand for Butyl Glycol used in coatings and paints. Furthermore, higher borrowing costs and recent regulatory shifts added to the financial strain on manufacturers and buyers alike, further dampening market sentiment.
The combination of rising feedstock costs, specifically Ethylene Oxide, and persistent supply chain challenges created a complex pricing environment. While the increased cost of Ethylene Oxide drove prices up, the overall market faced significant headwinds from subdued sector-specific demand and increased financial burdens. This interplay of factors highlighted a market scenario where positive influences on pricing were partially offset by broader economic and sector-specific challenges.
APAC
In the second quarter of 2024, the Butyl Glycol market in the APAC region saw a significant drop in prices. This decline was driven by a range of key factors that collectively shaped the market dynamics. The most pressing issue was a persistent supply surplus, which far exceeded demand. This imbalance was exacerbated by sluggish economic activity in critical downstream sectors, including personal care and paints and coatings. A decrease in feedstock prices, notably for ethylene oxide and n-butanol, further alleviated production costs, contributing to the downward pressure on Butyl Glycol prices. Additionally, logistical challenges and fluctuations in crude oil prices added complexity to the market, reinforcing the overall negative sentiment. In South Korea, the price changes for Butyl Glycol were particularly pronounced. The market experienced a clear downward trend throughout the quarter. Seasonal factors played a role, as demand typically wanes during the summer months, correlating with a slowdown in the paints and coatings sector due to reduced construction and renovation activities. This seasonality, combined with high inventory levels and tepid purchasing activity, created a consistent oversupply scenario that drove prices down. A comparison of the first and second halves of the quarter revealed a 2% price decrease, underscoring the ongoing market pressures. This decline was further exacerbated by disruptions in supply chains caused by plant shutdowns at key manufacturing facilities, adding to the volatility in prices. By the end of the quarter, the price for Ethylene Glycol Monobutyl Ether FOB-Busan in South Korea had dropped to USD 1510 per metric ton. This figure encapsulates the overall negative pricing environment of Q2 2024, reflecting the combined impact of oversupply, reduced demand, and production cost fluctuations on the market.
Europe
In the second quarter of 2024, the Butyl Glycol market in Europe experienced a significant decline in prices, primarily due to weak demand and an oversupply of the product. The market was marked by a combination of high inventory levels, sluggish trading activity, and a general market slowdown. These factors collectively drove prices downward. The key contributors to this downturn included excess inventory among suppliers and producers, reduced production costs—particularly due to falling feedstock prices for n-Butanol—and a persistent lack of demand from downstream industries such as personal care and paints. Geopolitical tensions and fluctuating feedstock prices added an additional layer of uncertainty, though their impact was comparatively minor. In Germany, the decline in Butyl Glycol prices was especially pronounced. The market trend was characterized by a steady drop in prices throughout the quarter, exacerbated by seasonal factors such as the typical summer slowdown in demand. The correlation between price changes and market conditions was evident, with the latter half of the quarter witnessing a sharper 4% decline compared to the first half. Overall, prices plummeted by 14% from the previous quarter. By the end of the quarter, the price for Ethylene Glycol Monobutyl Ether FOB Hamburg in Germany stood at USD 1570 per metric ton, reflecting the overall negative pricing environment. This significant drop underscores the market's sensitivity to imbalances between supply and demand and highlights the broader challenges facing the Butyl Glycol sector in Europe. Despite the unfavorable market conditions, there were no reported plant shutdowns or major disruptions, which further intensified the impact of oversupply. The Q2 2024 pricing landscape thus reveals a market struggling with high inventories, low demand, and a generally subdued trading atmosphere.
MEA
In the second quarter of 2024, the Butyl Glycol market in the Middle East and Africa (MEA) region experienced a pronounced bearish trend, driven by a confluence of adverse factors. The quarter was characterized by significant price declines, primarily due to weakened demand from key sectors such as paints and coatings, coupled with an oversupply of inventory. The market was saturated with excess stock as buyers reduced their orders, while manufacturing facilities continued to operate at full capacity, bolstered by a stable supply of Ethylene Oxide feedstock despite falling upstream costs. The easing of geopolitical tensions in the Middle East led to a drop in crude oil prices, further exerting downward pressure on feedstock costs. In Saudi Arabia, the impact of these conditions was particularly severe, with Butyl Glycol prices experiencing the most substantial drops. The decline was influenced by seasonal factors and ongoing supply-demand imbalances. A notable trend was the stabilization of prices towards the quarter's end, even though they initially fell sharply. The slowdown in the paint and coating industry during the summer months contributed to diminished demand, while high inventory levels from previous quarters exacerbated the downward pressure on prices. Compared to the previous quarter, Butyl Glycol prices fell by 8%, with an additional 6% decrease observed between the first and second halves of Q2. By the end of the quarter, the price of Ethylene Glycol Monobutyl Ether FOB Jeddah in Saudi Arabia had dropped to USD 1410 per metric ton. This decline reflects the broader challenges within the market, where weakened demand, excessive inventory, and lower upstream costs combined to create a deflationary environment. Despite these unfavourable market dynamics, no disruptions or plant shutdowns were reported, allowing for steady production levels amidst the challenging conditions. The overall sentiment remained negative, underscoring the tough market environment faced by the Butyl Glycol sector in Q2 2024.
