For the Quarter Ending March 2024
North America
The North American Butyric Acid market witnessed a depreciation of approximately 7% despite prices of feedstock Propylene (Refinery Grade) witnessing stability during the opening quarter of 2024.
The slump in the prices of the product was only observed during the initial month of 2024, where prices of the product recorded a 6% decline. The remainder of the quarter witnessed a stable market situation. Moreover, the post-festive dullness also prompted destocking activities which further improved supply conditions. The decline in the prices of the product is further attributed to the persisting drought conditions at the Panama Canal which prevented the suppliers from exporting to the international market and eventually led to stockpiling of the product.
Prices of feedstock Propylene (Refinery Grade) also failed to provide any support to the US Butyric Acid prices during this time frame. Moreover, demand conditions after the post Easter festival were sluggish with excess inventories being present and demand from the animal fodder industry did not show an improvement.
Asia
During the initial quarter of this year, the Asian Butyric Acid market experienced a decline in prices of about 5%, despite fluctuations being witnessed in the prices of feedstock Propylene (Chemical Grade). The Asian market was primarily driven by stockpiling of inventories due to challenging conditions in major ports across East Asia and disruptions at key waterways, hindering Asian suppliers from exporting cargo to merchants in North America and Europe. Additionally, the end of the Chinese Lunar New Year festivities led to reduced purchasing activities in downstream FMCG sectors and prompted destocking activities amongst suppliers. This consequently improved supply conditions and resulted in an oversupplied market situation. Moreover, restocking efforts were sluggish, with Asian suppliers showing reluctance to replenish their inventories, and procurements were made only need on basis. Also, adverse weather conditions in East China slowed product circulation, leading to transportation and logistics constraints. Delayed departures from the port of Shanghai, where operations were disrupted by rains in early March 2024, also contributed to the sluggish circulation of the product.
Europe
The European Butyric Acid market witnessed major appreciation in the prices of Butyric Acid during the opening quarter of 2024. Prices of Butyric Acid were recorded to have inflated by approximately 9% during this timeframe. The primary reasons considered for the increments in the prices of the product are attributed to the prevailing scarcity of feedstock Propylene and the scarcity of the product. The low availability of the feedstock Propylene was attributed to the turnaround of major Propylene plants across the exporting US market due to challenging weather conditions and elevated freight charges, resulting in expensive imports of the feedstock in the European market. This heightened production costs. Also, the shortage in the supplies of the product is attributed to the force majeure declared by OQ Chemicals at its Oberhausen site in Germany, which further increased the prices of the product. The demand conditions, however, did show some improvement during the last month of this quarter due to the prevailing Easter season which increased transactions in the downstream FMCG sector. This consequently prompted the prices of the product to witness a substantial increase.
For the Quarter Ending December 2023
North America
The pricing dynamics of Butyric Acid in the North American market have displayed a relative stability, marked by minor fluctuations primarily influenced by the varying costs of feedstock Propylene. Demand from both the downstream chemical intermediates sectors and Fast-Moving Consumer Goods (FMCG) industries remained consistently steady. The marginal price increments observed can be attributed to heightened festive demand prevailing in December 2023, particularly evident in the importing Canadian and Mexican markets.
Maintaining a generally balanced demand-supply equilibrium prevented substantial price fluctuations for the product. The inherent volatility in Propylene prices also played a significant role in shaping the overall pricing landscape. Over the course of the fourth quarter, prices experienced a modest quarterly increase of 0.7%, a reflection of stable supplies and continuous demand.
Challenges within the supply chain system in the United States were notable throughout the quarter, exacerbated by adverse weather conditions. These challenges, including limitations in transportation and storage, contributed to the minor price fluctuations observed for the product. As of the latest assessment, the price of Butyric Acid stands at USD 1390/MT FOB Houston.
APAC
The Asia-Pacific region has experienced a predominantly bullish market scenario for Butyric Acid, characterized by an approximately 5% increase in prices during the fourth quarter of 2023. This upward trend can be primarily attributed to the rising costs of feedstock Propylene, which surged by around 2%, consequently influencing production costs. Another contributing factor to the price hike is the substantial demand for exports from Southeast Asian markets. Positive purchasing sentiments, driven by the peak festive season, continued to exert pressure on existing inventories of the product, especially as demand from the Fast-Moving Consumer Goods (FMCG) sector escalated. Additionally, sustained demand from the chemical intermediate segment played a role in depleting existing inventories of Butyric Acid. Manufacturing activities in the importing Southeast Asian market expanded, even as the Chinese market experienced a contraction in manufacturing activities for the third consecutive month. The assessment of Butyric Acid prices stood at USD 1512/MT FOB Shanghai by the conclusion of the last quarter of 2023.
Europe
Throughout the last quarter of 2023, the European market for Butyric Acid demonstrated a consistent bullish trend, with prices experiencing an overall marginal increase of 2%. This upward trajectory in prices can be primarily attributed to the notable surge in feedstock Propylene prices, rising by more than 13%, consequently leading to increased production costs. Another contributing factor was the elevated food inflation observed across the Eurozone, where food prices witnessed a surge of more than 7% at the onset of the fourth quarter compared to the previous year. On the demand side, moderate purchasing activities were noted among the local populace during the initial months of the fourth quarter of 2023, intensifying towards December 2023. As the quarter concluded, prices were observed to have mostly stabilized, reflecting a subdued market in the European region following the conclusion of the post-festive season. The assessment of Butyric Acid prices stood at USD 1750/MT Free Alongside Ship (FAS) Le Havre by the conclusion of the last quarter of 2023.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, the Butyric Acid market in North America, particularly in the United States, displayed a mixed performance. The quarter commenced with a 3% price increase driven by growing export orders for services, while domestic demand faced challenges due to elevated interest rates. Manufacturers grappled with rising input costs, though service firms reported a more moderate increase in operating expenses. Despite these hurdles, US businesses saw an increase in activity, primarily led by the service sector in July. However, the latter part of the quarter witnessed a decline in Butyric Acid prices by 5.6% and 3.3% in August and September, respectively. These drops were mainly attributed to weakened demand from downstream industries, particularly food processing and solvents. The market maintained a stable supply of Butyric Acid, which contributed to the subdued pricing. Moreover, disruptions in maritime trade through the Panama Canal had an impact on international inquiries, prompting businesses to focus on stockpiling within the domestic market to ensure a stable supply chain in the face of global trade challenges. The combination of these diverse factors shaped the fluctuating price trend observed in the US Butyric Acid market during the third quarter of 2023.
Asia
The Asian Butyric Acid market witnessed a mixed performance in the third quarter of 2023. In the initial month, the product's price dipped by approximately 3% in the Chinese market. This decline was attributed to the lackluster performance of downstream sectors such as food, pharmaceuticals, and related industries. Throughout the quarter, the growth in these sectors remained stagnant, reflecting a subdued demand for Butyric Acid. Various factors contributed to this situation, including a weakened domestic economy, uncertain global demand, and ongoing trade tensions with the United States. China's manufacturing activity also contracted for the third consecutive month in June, albeit at a slower rate. However, in the final two months of the quarter, there was a marginal price increase of around 1.5% and 2.5% for the product. Despite this uptick, demand for Butyric Acid did not significantly improve, and the market continued to have an ample supply to meet domestic requirements. Interestingly, even with rising raw material costs, particularly propylene, Butyric Acid maintained price stability, primarily due to the absence of new orders from both domestic and international markets.
Europe
The European Butyric Acid market encountered a dynamic third quarter in 2023. In the initial month, the product price in the French market decreased by approximately 3%, attributed to sluggish performance in the food processing and personal care sectors. Manufacturing in France continued to grapple with hardships as both output and new orders plummeted for the fourteenth consecutive month. Responding to reduced demand, French manufacturers swiftly cut their input purchases in July, marking the steepest reduction of the year. However, the latter two months of the quarter saw a reversal in this trend, with product prices rising by around 1.5% and 1%, primarily due to limited product availability and elevated interest rates. There was a modest improvement in product demand, though the supply couldn't meet domestic needs. Consequently, domestic manufacturers raised prices to align with heightened demand and market conditions. Continuous supply constraints had depleted product stocks, but the quarter's end witnessed a slight demand uptick, prompting the need to replenish product supplies in the market.
For the Quarter Ending June 2023
North America
The price of Butyric Acid saw a sharp decline in the US market throughout the second quarter of 2023. The merchants continued to work through their existing stocks in the domestic market. The demand for the product did not rise due to the sufficient availability to meet the requirements of the downstream pharma, food processing, and chemical industries. Manufacturers saw a decline in fresh orders, and companies reported difficulties in receiving new business as consumers continued to consume their existing inventories with muted consumer confidence. The slowdown in consumer spending reflects cooling demand for Butyric acid in the downstream sectors. At the conclusion of the second quarter, the greater success in finding suitable candidates allowed firms to expand their workforce number in June, despite concerns about the future demand conditions. Overseas sales had dropped notably, and the domestic market remained deteriorating during this period. The price of Butyric Acid hovered around USD 1472/MT on a FOB Houston basis at the end of the second quarter of 2023.
APAC
The price of Butyric Acid saw an incline trend for the first two months of the second quarter due to the more inquiries received from the downstream industries across the Asian market. Enterprises were restocking the material to satisfy the downstream requirements during this period. In June, the Butyric Acid market saw a sudden decline in the Asian market, and the markets were not receiving new work orders among the enterprises and were working on the existing stocks. In addition, the low-cost pressure from feedstock Propylene attributed to stabilizing the product price. The Pharma and food processing industry remained flat during June due to low trading activities, which indicates the requirements of Butyric Acid were reduced owing to the sufficient supply in the market. The procurement sentiments declined, and the market saw a wait-and-see approach in China. There was a weakening domestic economy and export expectations due to the uncertain global demand and ongoing trade frictions with the US. China's manufacturing activity contracted for a third straight month in June, albeit at a slower pace.
Europe
In the second quarter of 2023, the cost of Butyric Acid remained in a weak pattern due to the low demand from the downstream Pharma, food processing, and chemical industries. Factory output was constrained by weakness in demand as inflationary pressures and overstocked client warehouses led new orders to fall sharply. Subsequently, backlogs of work depleted amid attempts to prevent additional production cutbacks. French factories also highlighted sharply falling new business throughout the second quarter of 2023. Falling input demand helped boost material supplies at vendors, speeding up delivery times and alleviating cost pressures. In addition, falling new sales was a notable headwind to manufacturers in Q2. The demand for Butyric Acid did not improve in the market for the past three months due to the economic uncertainty in France. The companies indicated a renewed drop-in activity, citing inflation and challenging financial conditions as reasons that led to lower business activity. Companies attributed the drop in sales volumes to pressures from inflation, competition, and higher interest rates.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Butyric Acid market showed mixed sentiment. Initially, the prices of Butyric Acid declined in January due to an abundant supply of the product and weak cost pressure from feedstock Propylene in the USA market. Suddenly the price of Butyric Acid sharply inclined for the rest of the quarter due to high-cost pressure from propylene, and demand started to improve from the downstream industries such as pharma and cosmetics. Additionally, the cost support from crude oil prices, which increased after the US Federal Reserve announced an anticipated increase in interest rates, contributed to the price move upward. As a result, the price of Butyric Acid was evaluated at USD 1762/MT on a FOB Houston basis during March 2023.
APAC
Butyric Acid prices in the Asia-Pacific region exhibited mixed trends during the first quarter of 2023. The first month of the quarter saw a decline in market value due to the weak procurement activities from the downstream cosmetics and animal feedstock industries. After the Lunar holidays, the buying sentiment from the end-users surged, and the demand for the product was improved from the domestic and overseas markets. Due to this, the manufacturer quoted a high price in the market. In March, the upstream Propylene prices were reduced, and the demand for the product was diminished due to poor buying sentiments from the downstream industries. As a result, the price of Butyric Acid was evaluated at USD 1367/MT on a FOB Shanghai basis during March 2023.
Europe
During the first quarter of 2023, the cost of Butyric Acid witnessed an inclining trend due to moderate demand from the downstream cosmetics and other key driving sectors in the European region. The propylene market upstream had an uptick, which had an impact on downstream products like butyric acid. Additionally, the market value of butyric acid was impacted by inflation and high-interest rates. The demand for the cosmetic industry was improved slightly, and the consumption of the product was expanded in the European market. As a result, the price of Butyric Acid was evaluated at USD 2262/MT on an FD Le Havre basis during March 2023.
For the Quarter Ending December 2022
North America
Butyric acid markets in North America experienced the same pattern as those in the Asia-Pacific region this quarter. The moderate demand for this product from companies downstream had an impact on the product's prices and were also influenced by the decrease in costs of upstream crude oil. Despite these factors, there weren’t any significant plant shutdowns. The price of this product in the United States was stable in the early days of this quarter, increased in the third week of October, and then returned to stability. However, prices began to fall in the second week of November, remained low for a while, and then continued to fall until the quarter's end.
APAC
The price of butyric acid had decreased even further in the Asia-Pacific region, in the final quarter of 2022. The lowered prices of propylene and syngas, which are the base materials used in the production of this product, and the average interest in this product exhibited by pharmaceutical, animal feedstock, and cosmetic companies for downstream processing were the two primary factors that contributed to the decline in butyric acid prices in India. In the case of China, the persistence of Covid- 19 restrictions contributed to the decrease in the price of this product. As a result, production activities in both the upstream (yet there weren’t any plant closures of this product recorded) and downstream industries were hampered, and as a result, buyers placed fewer orders for this product.
Europe
European markets saw price reductions for butyric acid as well. The demand for this product was significantly influenced by a number of factors. As per market members, worries about inflation, the continuous clash among Russia and Ukraine, and increasing natural gas costs were influencing the businesses in petrochemicals domain, due to which both upstream and downstream organizations showed normal interest for this commodity. In addition, this product's prices were impacted by the moderate performance of the propylene and upstream crude oil markets. However, there appeared to be no plant closures of entities involved in the production butyric acid.
For the Quarter Ending September 2022
North America
The North American markets of Butyric acid, too, did experience an identical trend to the one that Asia – Pacific markets had seen this quarter. The prices of this product were heavily influenced by the decline in costs of upstream crude oil, and the moderate demand for this product from downstream companies also had an impact on the prices of this product. In the U.S., the price of this product was in constant decline in the initial days of this quarter; however, the prices became idle from 12th August onwards till the third week of September 2022 because of the stability in the demand-supply ratio of this product. So, Butyric acid concluded its market in the U.S. at USD 1,370 per MT on FOB – Houston basis.
APAC
Butyric Acid has witnessed a further reduction in costs in the Asia – Pacific region. In India, Butyric acid prices were brought down because of two main reasons, the one being the lowered prices of propylene and syngas, base materials used in the production of this product, and the other being the average interest for this product exhibited by pharma, animal feedstock, and cosmetic companies for downstream processing. In the case of China, the drop in the cost of this product was because of acute power shortages, which made both upstream and downstream companies completely halt or lower their production rates. The enactment of zero covid strategies by governments in China, too, did influence the manufacturing activities and the price of this product. Hence, in China, Butyric acid closed its market this quarter at USD 1,555 per MT on FOB – Shanghai basis.
Europe
Butyric acid experienced a reduction in price in the European markets as well. Several factors had a significant impact on the demand for petrochemicals. According to market participants, consumer concerns about inflation, the ongoing conflict between Russia and Ukraine, and an approaching energy crisis were affecting petrochemical demand. Additionally, customers found it difficult to pass on ongoing cost increases due to supply chain delays. In France, butyric acid opened its market with a mild increase in cost and later witnessed a constant fall till the end of this quarter, ending its market at USD 2,600 per MT on FD – Le Havre basis.
For the Quarter Ending June 2022
North America
In the second quarter of 2022, the price of Butyric Acid increased trend movement throughout the quarter. The upstream raw material Butyraldehyde rose due to increased propylene prices. Manufacturers have raised market quotation prices due to tight supply and strong demand from downstream industries, and the OQ chemical company has revised Butyric Acid prices in North America. The freight rates index stood in the market due to the war between Russia and Ukraine, although the United States is the largest exporter of Butyric Acid. USA restricted business with Russia affected the crude oil commodities price hike.
Asia-Pacific
In the Asian region, the price of Butyric Acid has shown mixed trend movement throughout the second quarter. At the beginning of April and May, the upstream Butyraldehyde price soared in the region, leading to the prices of downstream Butyric Acid. Additionally, persistent port congestion in Asia led to crippling product availability across the Indian market. In the meantime, freight charges further inclined amid increased demand for Crude oil from the United States, Europe, and Asia. In mid of June, the decrease in crude oil prices and less demand from pharma, animal feed, and cosmetics plunged the price of Butyric Acid. The percentage declination of Butyric Acid in India was recorded at 2% on an Ex-Hazira basis during the quarter.
Europe
Throughout the second quarter, the price of Butyric Acid has been volatile in the European market. Due to tight supply and sufficient demand from end-users, the OQ chemicals have raised the price of Butyric Acid in the entire European region. The disruptions in supply and high crude oil prices further increase the cost of Butyric Acid. High production costs due to European countries limited Russia’s oil and gas imports. Butyric Acid prices in the regional market rose due to increased demand from the pharmaceutical and animal feed industries. Product costs increased as inventories were depleted.
For the Quarter Ending March 2022
North America
Taking pressure from global uncertainties, Butyric Acid prices kept on tracing an uptrend throughout the quarter across the US market. Demand fundamentals for the product from the derivative and pharmaceutical sector-maintained stability as improving economies coupled with soaring input costs accelerated the pace of price revisions in the North American region. Also, geopolitical tension between Russia-Ukraine remained a key driving factor behind this steep rise in prices of feedstock Butyraldehyde in the US market, as WTI and Brent crude oil values rose drastically along with Natural gas during this quarter. As per the assessment, Butyric Acid price hovered around USD 1480/MT in the quarter ending March 2022.
Asia Pacific
The solvent sector remained firm throughout the first quarter of 2022 across the Asian market, as the demand from the domestic market-maintained stability. During this timeframe, upstream Crude oil soared to a multiyear high in Asia, leading to unprecedented hikes in prices of several commodities, especially the derivatives. Additionally, import halts from China due to the resurgence of Covid-19 have resulted in product scarcity. Thus, tight supplies to the downstream pharmaceutical and intermediate chemical players and increased input costs led to frequent price revisions of Butyric Acid to sustain their margin. The prices were assessed as USD 2363/MT for Butyric Acid CFR Hazira in India towards the end of the quarter.
Europe
During this period, the Butyric Acid market exhibited different market sentiments than any other region, as all the regional players had to battle with different complications, especially the Russia-Ukrainian conflict. Rising energy costs remained a major concern for all the key players, as the prices of most of the commodities were increasing owing to an unprecedented surge in raw material and natural gas prices. The reduced consumer spending habits and sluggish demand patterns from the downstream solvent sector with sufficient inventories have hampered the market outlook of Butyric Acid in Europe. The CFR Antwerp negotiations for Belgian Butyric Acid Industrial grade lingered around USD 1650/MT during the month ending in March.
For the Quarter Ending December 2021
North America
Sluggish demand and tumbling feedstock prices kept Butyric acid prices in downtrend during this quarter across US market. Despite of the fact that demand fundamentals across US market have been sturdy for most of the commodities, Butyric Acid indicated overall stagnancy throughout the quarter. Meanwhile, feedstock propylene also kept on tumbling throughout the quarter, post prolonged bullishness induced after freezing fallout at US gulf coast. It was observed that Propylene, a decline of around 5% compared to Q3 2021 quarterly average. However, downstream industries like Pharma and chemical intermediate worked differently for Butyric Acid, and the key driver of Butyric acid was remained pharma only during this timeframe.
Asia
Butyric Acid demand in Asian market remained dull during Q4 2021 despite booming economic activities in major Asian Economies. Key producer witnessed diminishing offtakes from downstream end user segment, while pharma sector maintained overall stability. Plummeting raw material cost also remained major reason behind deteriorating Butyric acid price in Asian market. However, festive season in Indian helped prices to sustain its value till November, which later declined effectively in the domestic market. December fall was primarily driven by muted offtakes from the domestic market, while traders heard carrying ample inventories to satisfy all the possible downstream demand till the end of 2021. Butyric acid price asses around USD 2408/MT during December.
Europe
European market remained dull for this product during this quarter, as the demand for the product across domestic market remained modest to stable, while supplies remained a matter of concern. Feedstock propylene was also rising on the back of high input cost amid modest to stable offtakes from the regional market. Major procurers in Europe heard procuring cargoes of raw material from Northeast Asia, which 50-60 USD/MT cheaper than domestic one. Butyric Acid demand in Europe remained sluggish than several other related commodities during this time period.
For the Quarter Ending September 2021
North America
During Q3 of 2021, market outlook of Butyric Acid showcased an upward rally in North America backed by the critical scarcity of feedstock Propylene. In the US, most of the manufacturers were compelled to shut down their production plants as a repercussion of Ida hurricane that made landfall at the end of August. For instance, key producers of Propylene like ExxonMobil and Dow Chemicals at Baton Rouge, Louisiana, and Taft, Louisiana, respectively kept their manufacturing units closed for about 14 days that consequently impacted the feedstock supplies. Hence, constraint availability of the product and sturdy demand from the downstream sectors during this quarter aided the pricing trend of Butyric Acid.
Asia
In Asia, Butyric Acid prices continued to be bolstered during the third quarter of 2021 backed by the spike in the prices of feedstock Propylene and high demand from the downstream manufacturers. In China, the congestion on several ports followed by the corona virus zero-tolerance policy and lower production rates due to energy crisis led to the steep rise in the values of Butyric Acid in this timeframe. In India, prices of Butyric Acid in the domestic market continued to be strengthened throughout the quarter in effect of tightened supplies and sturdy demand fundamentals. Moreover, skyrocketing freight charges and limited availability of shipping containers also supported this upward price trajectory in India. Hence, Butyric Acid CFR Hazira prices rose effectively from USD 1927.93/MT to USD 2338.11/MT within the quarter.
Europe
During the third quarter of 2021, prices of Butyric Acid escalated in the European region backed by the recovery of the industrial as well as commercial activities. Spike in the values of feedstock Propylene and improvement in the offtakes from the downstream manufacturers in this timeframe also aided the pricing trend of Butyric Acid. Additionally, crippled availability of shipping containers as well as continuously soaring freight charges also sent ripples to the prices of Butyric Acid in this quarter.
