For the Quarter Ending December 2024
North America
In Q4 2024, the market for Butylated Hydroxytoluene (BHT) in North America showed a positive trend, largely driven by increasing demand across various sectors such as plasticizers, pharmaceuticals, cosmetics, and animal feed. BHT, known for its antioxidative properties, continued to be an essential ingredient in food preservation, ensuring extended shelf life for a wide range of products.
Throughout the quarter, demand remained strong, especially from the animal feed industry, where BHT played a critical role in prolonging the shelf life of feed products. However, fluctuations in toluene prices, influenced by global crude oil price movements, impacted the production costs of BHT. Supply chain disruptions, stemming from port congestion and geopolitical tensions, also posed challenges.
Despite these hurdles, the market outlook remained stable as manufacturers focused on maintaining production levels to meet the sustained demand. The increase in food processing and cosmetics demand also bolstered BHT consumption. As a result, BHT prices remained relatively stable, supported by robust demand and manageable production costs throughout Q4.
APAC
In Q4 2024, the BHT market in the APAC region showed moderate growth, driven by consistent demand from end-use sectors such as pharmaceuticals, food processing, and cosmetics. The region’s demand for BHT remained steady, especially from the food industry, where it continued to play an essential role as a preservative.
The animal feed sector also witnessed higher demand, as BHT helps extend the shelf life of feed products. Throughout the quarter, the market faced challenges, including logistical disruptions caused by port congestion and the impact of geopolitical tensions. Despite these hurdles, the overall demand for BHT remained strong, especially in India, where it was primarily used in food processing and cosmetics. However, the volatility in toluene prices, stemming from crude oil fluctuations, continued to exert upward pressure on BHT production costs.
Manufacturers focused on increasing production capacity to meet the rising demand. Although supply chain issues persisted, the market outlook for BHT in the APAC region remained positive, with steady demand from both the food and animal feed sectors supporting the price trend.
Europe
In Q4 2024, the BHT market in Europe experienced stable demand, driven by consistent consumption in key industries such as food and beverages, pharmaceuticals, and cosmetics. BHT continued to be in demand for its antioxidative properties, particularly in food preservation and extending product shelf life. The animal feed industry also contributed significantly to the demand for BHT, as it played a vital role in preserving feed quality.
However, like other regions, Europe faced challenges from fluctuating raw material costs, particularly toluene, which impacted BHT production costs. Despite these fluctuations, the demand remained strong, especially in the food processing and pharmaceutical sectors. Geopolitical factors, including disruptions at European ports, created supply chain challenges and contributed to price volatility in the BHT market. Nevertheless, manufacturers maintained steady production levels, and the outlook for the BHT market in Europe remained stable.
Prices saw moderate increases due to higher production costs, but overall demand continued to support a balanced pricing environment for the quarter. Despite supply chain disruptions, the market demonstrated resilience throughout Q4 2024.
For the Quarter Ending September 2024
North America
The BHT market in the U.S. has witnessed a slowdown, driven by declining demand from industries such as plasticizers, animal feed, pharmaceuticals, cosmetics, and food. Price trends had been affected by fluctuating production costs, with isobutylene, a key feedstock, experiencing lower price movements in the previous month.
Additionally, shifting consumer preferences toward fresh, unprocessed food had contributed to reduced demand for packaged food products and pharmaceuticals, lessening the need for BHT’s antioxidant properties, which typically prolonged product shelf life. Although the advancements have deepened the understanding of BHT, concerns over its potential health risks had led to tighter regulations. This resulted in researchers scaling back efforts to enhance testing methods, and the development of advanced techniques for measuring BHT levels had decelerated, leading to a more cautious approach in its use across food, cosmetics, and pharmaceuticals.
During this period, the availability of Butylated Hydroxytoluene had been ample, supported by lower production costs due to declining stearic acid prices. Additionally, offshore oil and natural gas production units along the U.S. coast had faced significant threats from hurricanes and tropical storms, prompting emergency protocols to evacuate nonessential personnel and temporarily halt production.
APAC
The BHT market had experienced a slowdown, driven by reduced demand from sectors such as plasticizers, animal feed, pharmaceuticals, cosmetics, and food. Fluctuating production costs had also influenced prices, with isobutylene, a key feedstock, showing lower price movements in the previous month. Additionally, changing consumer preferences toward fresh, unprocessed food had contributed to reduced demand for packaged foods and pharmaceuticals, diminishing the need for BHT’s antioxidant properties, which typically extended product shelf life. Research momentum in the market had slowed as focus shifted to alternative additives considered safer. Despite advancements in understanding BHT, concerns over its health risks had led to stricter regulations. As a result, researchers had scaled back efforts on testing, and the development of advanced techniques for measuring BHT levels had slowed, leading to a more cautious approach toward its use in food, cosmetics, and pharmaceuticals. This month, the availability of Butylated Hydroxytoluene had been ample, supported by lower production costs as stearic acid prices had declined. Meanwhile, India's west coast ports, particularly Mundra Port, had faced severe delays and congestion due to heavy rainfall and ongoing capacity issues.
Europe
The BHT market in Europe had experienced a slowdown, driven by declining demand from sectors such as plasticizers, animal feed, pharmaceuticals, cosmetics, and food. Price trends had been influenced by fluctuating production costs, with isobutylene, a key feedstock, showing lower price movements in the previous month. Additionally, shifting consumer preferences toward fresh, unprocessed food had contributed to a reduction in demand for packaged food products and pharmaceuticals, decreasing the need for BHT’s antioxidant properties, which typically extended product shelf life. The development of advanced techniques to measure BHT levels had slowed, resulting in a more cautious approach toward its use in food, cosmetics, and pharmaceuticals. During this time, the availability of Butylated Hydroxytoluene in Europe had been ample, supported by lower production costs due to the decline in stearic acid prices. Additionally, offshore oil and gas production facilities in European waters had faced significant threats from adverse weather conditions, leading to emergency procedures to evacuate personnel and temporarily suspend operations. Although there were no reports of plant shutdowns, the market continued on a negative trajectory, remaining unaffected by supply disruptions. This downward trend underscores the challenges faced by the market and the strategic changes implemented by industry participants to address logistical issues and falling input costs.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Butylated Hydroxytoluene (BHT) market experienced stability, influenced by a confluence of factors. Predominantly, weak derivative demand and decreasing production costs were pivotal in impacting prices. The market was further destabilized by volatile crude oil futures and consistent reductions in feedstock prices. Despite significantly curtailed production rates due to overarching market uncertainty, the supply of BHT continued to outpace downstream demand.
The limited cost support from falling feedstock naphtha prices exacerbated a bearish market sentiment among manufacturers. Additionally, lower operational rates and contracting manufacturing activity added to the pricing pressure. Focusing on the USA, which witnessed the most substantial price fluctuations, the overall trend was distinctly downward. Seasonality did not provide the typical uplift, and the consistent decline was evident in the correlation between market dynamics and pricing trends.
Other factors that had an impact on the final prices of BHT were inclusive of the continuous and stable demand outlook from the end-use manufacturing sectors that is pharmaceutical, as a preservatives, rubber, and plastics. On the other hand, the prices are expected to pick up the pace in the coming quarters as the demand volume rises along with the higher production cost.
APAC
In the second quarter of 2024, Butylated Hydroxytoluene prices remained on the positive side steadily due to a favourable demand outlook from the pharmaceutical and rubber industries. India has developed strong markets for cattle and poultry feeds, with growth rates of 15% and 8-9%, respectively, suggesting considerable future potential.
The demand outlook from the pharmaceutical industries remained positive due to the increasing demand. The industry achieved feed-based efficiencies and rationalization because of the presence of integrators, who constituted 70% of the total industry, and a shorter production cycle.
However, the broader scope of the poultry industry and its expansion beyond these regions presented significant opportunities for independent feed producers. The use of compound feed in the layer industry, which ranged from 5 to 25%, was highly underpenetrated, offering substantial growth potential.
Europe
In Q2 2024, the European market for Butylated Hydroxytoluene did not witness much fluctuations reflecting a modest sentiment throughout the quarter. The key factors driving this decline included ample domestic supply, weakened demand from downstream industries, and the fluctuating global prices of naphtha and crude oil. The oversupply of Butylated Hydroxytoluene, combined with steady but not strong demand, led to a supply-demand imbalance that put downward pressure on prices. Additionally, macroeconomic factors such as rising interest rates, inflation, and economic stagnation across Europe further restricted demand, particularly from the construction, automotive, and manufacturing sectors that use Butylated Hydroxytoluene and its derivatives.
Seasonal trends, which usually involve higher activity in warmer months, did not materialize, and increased rainfall disrupted transport routes, exacerbating the situation.
The consistent stagnancy in Butylated Hydroxytoluene prices in Europe during Q2 2024 highlights a challenging pricing environment, heavily influenced by both internal supply-demand dynamics and external economic pressures, leading to a predominantly negative market sentiment.
