For the Quarter Ending March 2025
North America
The North American Butyric Acid market rose approximately 8.3% during Q1 2025, driven by production disruptions from harsh winter weather and price hikes by key producers, despite largely moderate demand. In January, ample inventories and stable feedstock prices kept production costs steady, though major producers like OQ Chemicals and Perstorp Oxo-AB announced price hikes. Domestic demand remained moderate, with weak consumption from the animal feed sector due to declining corn yields, and subdued activity in food and flavoring segments amidst falling consumer confidence.
In February, a severe winter storm disrupted Propylene supply along the U.S. Gulf Coast, tightening Butyric Acid availability. This supported price increases, reinforced by another hike from Perstorp. Export activity improved with a surge in chemical railcar loading, depleting some inventories and boosting prices. However, demand improvements were limited, as the animal feed sector remained weak due to lower corn production, and consumer confidence continued to decline.
By March, curtailed production persisted due to reduced refinery run rates, keeping supply tight. However, lower transportation costs and cautious downstream buying amid economic concerns kept prices most stable. Demand stayed subdued across major application sectors.
Europe
The European Butyric Acid market saw a modest 2.6% increase in Q1 2025, driven by production outages, low plant run rates, and rising production costs amid feedstock Propylene price hikes. However, ample backlogged inventories and muted demand limited the extent of price gains. Prices fell by 2% in January but rebounded approximately 5% through February and March. In January, despite price hikes from major producers, ample supplies and rollover pricing dominated due to weak post-holiday demand and port delays in Hamburg. The animal feed sector showed modest growth in some EU regions, but ASF outbreaks and environmental regulations continued to suppress demand. The chemical intermediate sector remained fragile, with low exports and prolonged contraction. February saw rising production costs due to tight Propylene supply and ongoing port strikes at Le Havre, causing logistical delays. However, price momentum was limited by leftover inventories. Demand remained weak, affected by declining animal pottery production and cautious chemical sector procurement. In March, production constraints persisted amid cracker outages and high Propylene prices. Demand stayed subdued across all downstream sectors, worsened by declining consumer confidence and exclusion of Butyric Acid from new EU-approved feed additives, dampening hopes of a market rebound.
APAC
The APAC Butyric Acid market experienced mixed pricing trends in Q1 2025, with prices rising approximately 2.5% during January and February before declining by a similar margin in March, resulting in minimal net movement. In January, despite price hikes from producers like Perstorp and OQ Chemicals, ample inventories and weak downstream demand led to rollover pricing. Propylene costs rose slightly, and PDH operating rates in China declined, contributing to modest production levels. Demand was moderate, with limited consumer activity despite slight CPI growth. February saw elevated production costs amid higher feedstock Propylene prices, but trade remained slow due to Lunar New Year closures and poor export demand. Downstream sectors like animal feed and chemical intermediates showed minimal improvement. China’s PMI slipped to 49.1, reflecting contracting industrial activity and weak Butyric Acid consumption. In March, market sentiment remained bearish. Improved PDH operating rates and lower Propylene prices reduced production costs, while ample supplies and rising port inventories sustained pressure on prices. Domestically, demand improved due to policy support and increased holiday spending. However, weak export activity—particularly to Southeast Asia during Ramadan—limited broader market recovery, keeping pricing subdued overall.
For the Quarter Ending December 2024
North America
The North American Butyric Acid market experienced fluctuating price movements during Q4 of 2024, with prices initially declining by approximately 1.7%, then recovering by about 1.2%, before falling again by 2.5%.
At the beginning of Q4, the price rise in Butyric Acid was largely attributed to reduced domestic demand, with continued weakness in the chemical manufacturing industry. U.S. suppliers largely worked with existing inventory during the hurricane season, which lasted until November 2024. However, as the hurricane season ended, demand conditions improved in late November, and export conditions also showed signs of recovery, with multiple reports of low-loading railcars, which helped keep the market steady.
By mid-quarter, export conditions turned bearish again due to the strike between ILA and USMX, leading to disruptions in port operations. As the year drew to a close, destocking activities took over, with suppliers focusing on inventory reduction. Despite this, demand conditions remained unfavorable, especially in the animal feed industry, which faced a downturn and reduced procurement activities during the North American festive holidays.
Europe
The European Butyric Acid market witnessed a depreciation of approximately 7% during Q4 of 2024. For most of the quarter, the prices of Butyric Acid remained stable, driven by strikes and disruptions in the feedstock Propylene market. Suppliers maintained moderate activity across the region; however, increments in lead times for deliveries persisted due to disruptions in rail freight, which also drove up logistics costs.
Towards the end of the year, suppliers primarily focused on destocking their inventories, moving them in bulk. This resulted in ample supplies in the market. With the arbitrage window largely closed, supply remained abundant with no significant disruptions, continuing to be the dominant factor behind the bearish price trends.
Demand conditions remained unfavorable throughout the quarter. The initial months witnessed a downturn in the primary chemical intermediate sector as manufacturing activities faced retrenchment. Additionally, unfavorable demand conditions were observed in the animal feed sector, further contributing to the weak market performance.
APAC
The Chinese Butyric Acid market experienced varied conditions during Q4 2024. Prices remained unchanged during the initial month of the quarter, displayed a 1% increment mid-quarter, and subsequently depreciated by approximately 7.5% as destocking activities gained momentum.
Demand conditions fluctuated throughout the period, with the animal feed industry witnessing largely subdued demand and only moderate improvements. Economic stimuli announced by Chinese authorities yielded underwhelming results, with many market participants reporting that these measures had yet to translate into tangible transactions.
Midway through the quarter, prices temporarily rose due to supply tightness and increases in feedstock Propylene prices, prompting sellers to raise their quotations. However, towards the end of the year, widespread destocking activities became prevalent. Export conditions turned unfavorable due to seasonal typhoons impacting key Butyric Acid importing markets in Southeast Asia. This led to inventory accumulation at Chinese ports, adding further downward pressure on prices.
For the Quarter Ending September 2024
North America
In Q3 2024, Butyric Acid prices in North America saw a significant rise, particularly in the USA, which led these price shifts. The market experienced a positive sentiment due to several factors. Supply constraints from low inventories and reduced production played a crucial role in driving prices higher.
Additionally, disruptions in feedstock Propylene supplies tightened the market further. Increased demand from the animal feed and food flavoring industries also contributed to the price escalation, as restocking efforts intensified with the festive season approaching. However, a strike by the International Longshoreman Association (ILA) at the end of September 2024 led to inventory build-ups at ports, creating unfavourable export conditions.
In the USA, Butyric Acid prices increased by 2% from the previous quarter, although there was a 3% decline compared to the same quarter last year. Despite this, the market demonstrated resilience, with prices consistently rising—showing a 6% increase between the first and second halves of the quarter. The quarter ended with Butyric Acid priced at USD 1,350/MT FOB Houston, reflecting the overall bullish sentiment in the market.
APAC
In Q3 2024, the Butyric Acid market in the APAC region faced a significant decline in prices, primarily driven by a combination of factors. China emerged as the focal point of these price changes, with the market experiencing notable downward pressure. Key contributors to this trend included subdued demand in critical sectors such as animal fodder and chemical intermediates, alongside unfavourable export conditions that further exacerbated the situation. The prevailing bearish sentiment in the market was compounded by stable prices of feedstock Propylene, which helped maintain steady production costs despite the low demand environment. In China, prices plummeted by -13% compared to the same quarter last year, with a recorded -7% decrease from the previous quarter. The second half of Q3 also reflected this trend, with a further -2% decline compared to the first half of the quarter, underscoring the consistent downward trajectory. By the end of the quarter, the price for Butyric Acid FOB Shanghai settled at USD 1270 per metric ton, highlighting the negative pricing environment prevailing in the region. This ongoing decline raises concerns for producers, who may need to adapt to shifting market dynamics moving forward.
Europe
In Q3 2024, the European Butyric Acid market experienced a notable decline in prices, influenced by several critical factors. Prices dropped by 3% compared to the same quarter last year and also fell by 3% from the previous quarter, highlighting a sustained downward trend. The decline was consistent, with a 1% decrease noted between the first and second halves of the quarter, reflecting ongoing market challenges. Despite maintenance periods at various U.S. feedstock Propylene facilities in August and September, which temporarily reduced Butyric Acid production, the market shifted to a bearish outlook by mid-September as these facilities resumed operations, improving production conditions. This influx of supply contributed to the downward pressure on prices. In France, where the most significant price changes were observed, subdued demand from the manufacturing sector and reduced production costs further influenced the overall European trend. By the end of the quarter, the price for Butyric Acid FD Le Havre in France settled at USD 1,770 per metric ton. This figure underscores the downward pricing trajectory throughout Q3 2024, signaling potential challenges ahead for producers as they navigate fluctuating demand and supply dynamics.
For the Quarter Ending June 2024
North America
During Q2 2024, the Butyric Acid market in North America maintained a stable pricing environment, largely influenced by a balanced gap between demand and supply. The quarter was characterized by several significant factors that contributed to this stability. Limited inquiries from the downstream animal feed industry, combined with a stable supply of feedstock Propylene, played a crucial role in keeping prices steady. Despite occasional disruptions in manufacturing activities caused by severe weather conditions, the overall supply chain remained resilient, ensuring a consistent flow of Butyric Acid.
In the USA, which experienced the most notable price changes, the market trends reflected stability. The price of Butyric Acid exhibited minimal fluctuations, with no significant difference between the first and second half of the quarter. This stability can be attributed to moderate demand from the animal feed sector, offset by robust demand from the food and flavouring industries. Seasonal factors such as the peak summer season did not markedly impact prices, indicating a balanced market environment.
Compared to Q2 2023, the price of Butyric Acid decreased by 20%, highlighting a substantial year-over-year decline. This reduction can be linked to subdued demand and improved supply conditions. Additionally, the prices observed a 6% decline from the previous quarter in 2024, further emphasizing the trend of gradual price reduction.
However, throughout Q2 2024, the pricing environment remained stable, culminating in a quarter-ending price of USD 1200/MT FOB Houston. Overall, Q2 2024's Butyric Acid market in North America demonstrated a stable sentiment. The consistent balance between supply and demand, coupled with moderate demand conditions and resilient supply chains, fostered a stable pricing environment, reflecting a neutral outlook for stakeholders in the industry.
APAC
The second quarter of 2024 witnessed a significant downturn in Butyric Acid prices throughout the Asia-Pacific (APAC) region, influenced by several critical factors. Weak demand from the animal fodder sector, exacerbated by seasonal declines in pork consumption during peak summer months, heavily impacted market dynamics. Moreover, logistical disruptions such as port congestions and delayed shipments worsened the supply-demand imbalance, leading to increased inventory levels. High freight charges across Asia further compounded the downward pressure on prices, making the importation of Butyric Acid costlier. China, experiencing the most pronounced price fluctuations, saw an overall bearish trend. Declining PMI figures in the manufacturing sector reflected soft demand from chemical intermediates. Additionally, global oversupply of Ethylene affected Propylene availability and subsequently influenced Butyric Acid pricing. Seasonal factors were also pivotal, with reduced pork consumption during peak summer reducing the demand for Butyric Acid in animal feed applications. Comparing Q2 2024 to the same period last year, prices declined by 4%, highlighting sustained negative market sentiment. From the previous quarter in 2024, prices dropped even more sharply by 6%, indicating worsening bearish conditions. Within the quarter, a consistent downward trend was evident with a 4% reduction between the first and second halves. As of the quarter's conclusion, Butyric Acid was priced at USD 1320/MT FOB Shanghai, signaling a continuation of the adverse pricing environment. Overall, the Butyric Acid market in the APAC region during Q2 2024 faced predominantly negative conditions driven by weak demand and logistical challenges.
Europe
In Q2 2024, the Butyric Acid market in Europe faced a substantial decline in prices, influenced by several impactful factors. The resumption of production at OQ Chemicals' facilities alleviated previous supply shortages, exerting downward pressure on prices. This increased availability of Butyric Acid was amplified by the reopening of LyondellBasell’s steam cracker, improving Propylene feedstock supply and lowering production costs further. Concurrently, a bearish sentiment persisted in the manufacturing sector, characterized by ongoing weaknesses in order books, which dampened demand for Butyric Acid and reinforced the downward pricing trend. France experienced notable price volatility, primarily driven by improved supply conditions and cautious market sentiments anticipating further price decreases. Seasonal variations, including reduced activity in the chemical intermediate sector, also contributed to this trend. The correlation between increased supply and reduced demand was evident, with prices declining by 7% between the first and second halves of the quarter. Compared to Q2 2023, prices decreased by 1%, while the decline from the previous quarter in 2024 was 3%. Ending the quarter, Butyric Acid was priced at USD 1770/MT FD Le Havre in France, highlighting a consistently significant negative pricing environment throughout Q2 2024. This period marked a significant downturn driven by heightened supply and subdued demand, shaping an unfavourable pricing landscape for Butyric Acid across France and Europe.
