For the Quarter Ending March 2025
North America
In the first quarter of 2025, Dibutyl Phthalate (DBP) prices in North America experienced a steady decline, largely influenced by weak demand from key downstream sectors. The construction industry, which is a major consumer of DBP in plasticizer applications, remained sluggish due to high interest rates and reduced residential activity, leading to lower procurement levels. The PVC sector also exhibited restrained purchasing behaviour, further dampening demand for DBP during this period.
On the supply side, DBP availability remained sufficient throughout the quarter. Consistent domestic production and relatively stable upstream n-butanol costs ensured an uninterrupted supply flow. However, despite manageable input costs, the market faced excess inventory levels, driven by subdued buying interest and cautious procurement across downstream industries. This supply-demand mismatch kept market sentiment weak and exerted downward pressure on prices.
Overall, Q1 2025 reflected a bearish market for DBP in North America, with ample supply, reduced demand from key end-use sectors, and declining prices dominating the quarterly landscape.
APAC
During Q1 2025, Dibutyl Phthalate (DBP) prices in the APAC region followed a slightly declining trajectory, influenced by weak demand and stable supply conditions. Although upstream n-butanol prices rose initially, this did not translate into higher DBP prices due to subdued downstream consumption, particularly from the PVC and construction sectors. Oversupply and cautious procurement by buyers contributed to limited market movement, with sellers under pressure to maintain competitive pricing amid soft fundamentals.
Supply dynamics throughout the quarter remained steady, supported by consistent domestic production and sufficient feedstock availability. Despite brief cost pressures in the early part of the quarter, easing n-butanol prices toward the end helped stabilize input costs. No significant disruptions were observed in manufacturing or logistics, keeping the market well supplied.
Demand stayed muted across key sectors, including construction and automotive, as industrial activity remained sluggish. Buyers continued essential procurement only, with low inventory levels maintained across the board. Market sentiment remained cautious, limiting any potential rebound in DBP prices during the quarter.
Europe
In the first quarter of 2025, Dibutyl Phthalate (DBP) prices in Europe exhibited a consistent downward trend, primarily influenced by subdued demand from key downstream sectors. The construction industry, a significant consumer of DBP, remained sluggish due to economic uncertainties and reduced housing activities, leading to decreased consumption of plasticizers. This decline in demand disrupted the supply-demand balance, exerting downward pressure on DBP prices.
On the supply side, DBP availability remained ample throughout the quarter. Consistent domestic production and steady imports from Asia ensured sufficient market supply. Despite manageable input costs, the market faced excess inventory levels, driven by subdued buying interest and cautious procurement across downstream industries. This oversupply situation, coupled with weak demand, kept market sentiment bearish and exerted further downward pressure on prices.
Overall, Q1 2025 reflected a bearish market for DBP in Europe, characterized by ample supply, reduced demand from key end-use sectors, and declining prices. The combination of these factors contributed to a challenging market environment for DBP during this period.
For the Quarter Ending December 2024
North America
In Q4 2024, Dibutyl Phthalate (DBP) prices in North America exhibited a mixed trend, influenced by shifting demand dynamics and stable supply conditions. Early in the quarter, seasonal fluctuations and strong demand from downstream industries, such as PVC manufacturing, supported moderate price increases. Key sectors, including construction and consumer goods, experienced heightened activity, driving demand for DBP as a plasticizer. Economic resilience in some regions contributed to steady growth in construction and industrial production, further bolstering demand.
However, the positive momentum was offset by challenges in the latter part of the quarter. A slowdown in economic conditions and reduced consumer spending began to temper demand for DBP in critical sectors like automotive and housing. Seasonal declines in construction activity and logistical challenges, including transportation delays, added downward pressure on prices. Despite these challenges, supply-side factors such as stable production rates and adequate raw material availability ensured consistent market availability, preventing sharp price fluctuations.
Overall, the North American DBP market in Q4 2024 was marked by an initial price uptick driven by robust industrial activity, followed by a gradual decline as economic headwinds and seasonal effects softened demand.
APAC
In Q4 2024, Dibutyl Phthalate (DBP) prices in the APAC region exhibited an overall declining trend, driven by subdued demand across key downstream sectors, despite stable supply dynamics. Early in the quarter, market conditions were characterized by moderate activity, with stable DBP demand in construction and industrial applications. However, rising costs in the construction sector, including labor and borrowing expenses, constrained project budgets, dampening demand for DBP as a key plasticizer in PVC production. Additionally, the post-festive season slowdown in procurement further softened demand in associated markets like PVC.
As the quarter progressed, the slowdown in infrastructure and automotive projects across the region, coupled with weaker consumer sentiment, further weighed on DBP consumption. While the premium housing market displayed resilience, supporting moderate demand for PVC-based products, this was insufficient to offset the overall decline in industrial and consumer goods applications. The automotive sector faced challenges with rising costs and reduced consumer spending, leading to lower demand for DBP in interior trims and wiring.
On the supply side, stable production and efficient supply chains ensured consistent availability of DBP. Despite global trade fluctuations, regional manufacturers maintained balanced inventory levels, preventing supply shortages. However, with persistent economic pressures and reduced downstream activity, DBP prices experienced a gradual decline throughout Q4 2024.
Europe
The Dibutyl Phthalate (DBP) market in Europe exhibited a mixed price trend during Q4 2024, influenced by diverse demand and supply factors. Early in the quarter, demand experienced a seasonal uptick due to heightened production in downstream sectors like construction, automotive, and packaging. The construction sector, buoyed by infrastructure projects and commercial activity, contributed to robust demand for PVC products, where DBP serves as a key plasticizer. Additionally, moderate economic recovery in parts of Europe supported industrial activities, further driving DBP consumption.
However, regulatory pressures surrounding DBP's environmental and health implications began to exert downward pressure on demand. The enforcement of stricter regulations in certain regions led to shifts towards alternative plasticizers, creating a challenging competitive landscape. Toward the latter half of the quarter, economic uncertainties, particularly in major economies, weakened consumer spending and industrial production, softening DBP demand in key sectors.
On the supply side, stable production rates and consistent raw material availability ensured a balanced market. Logistics challenges, including increased transportation costs, occasionally contributed to price fluctuations, but supply disruptions were minimal. Overall, Q4 2024 saw an initial price increase due to strong demand, followed by a gradual decline as regulatory and economic factors weighed on the market.
For the Quarter Ending September 2024
North America
Q3 2024 saw limited price movements for DBP, with fluctuations contained within a narrow range due to several interacting factors. The U.S. economy sent mixed signals, balancing strength with inflation concerns and geopolitical risks.
Supply conditions were influenced by stable manufacturing output and evolving trade conditions. The Producer Price Index (PPI) for manufacturing fell slightly from 249.624 in Q2 to 248.383 in Q3, suggesting modest production cost relief. Rebuilding inventories, after earlier drawdowns, contributed to Q2 GDP growth of 3.0%, with 2.7% growth expected for the full year.
Consumer spending and business investments, bolstered by the CHIPS Act and other policies, remained key drivers of demand. Meanwhile, inflation eased, dipping below 3.0% by July. Yet, geopolitical tensions in Ukraine and the Middle East, coupled with possible import tariffs, created risks for supply chains and trade flows. Although the Fed’s planned rate cuts aim to support spending, uncertainties in labor dynamics and trade policies could weigh on supply conditions into 2025.
Asia
In Q3 2024, DBP prices in India showed a moderate upward trend, driven by seasonal demand, economic recovery, and evolving market dynamics. Prices remained stable at USD 1550/MT (Ex-Mumbai) in both July and August, reflecting balanced supply-demand conditions amid mixed performance across key sectors. While automotive sales fluctuated—passenger vehicle sales declined but two-wheeler sales increased—steady demand from manufacturing, infrastructure, and textiles supported market stability. In September, DBP prices rose by 3%, fueled by peak procurement activities during the festive season. Economists noted that the surge in demand may ease in the coming months as seasonal factors wane, potentially normalizing prices. Global supply chains faced uncertainties from geopolitical tensions in the Middle East and ongoing disruptions in shipping, though trade between China and India remained unaffected during the quarter. Despite challenges such as monsoon-related construction slowdowns and high inventory levels in certain sectors, Q3 ended on a positive note for DBP, with healthy market sentiment and robust demand across multiple industries. However, stakeholders anticipate potential price corrections post-festive season, given the possibility of cooling consumer sentiment and persisting geopolitical risks.
Europe
European DBP prices fluctuated narrowly throughout Q3 2024 due to lingering economic uncertainties, fueled by the ongoing conflict in West Asia and sluggish growth in the U.S. and Europe. Rising freight costs added to the challenges, with carriers like MSC and CMA CGM raising FAK rates to as high as $6,500 per container amid space constraints and operational fees. Additional disruptions from the Red Sea crisis and Singapore’s port congestion delayed shipments. Air freight rates from Northeast Asia to Europe also climbed sharply, boosted by rising e-commerce sales and semiconductor demand. Despite added capacity, imbalances between outbound and inbound shipments persisted. As geopolitical risks and seasonal demand intensify, freight market volatility is expected to continue into Q4. On the economic side, Germany—the eurozone's largest economy—struggled with weak industrial output, high energy costs, and declining exports, dragging down regional economic performance.
For the Quarter Ending June 2024
North America
In Q2 2024, Dibutyl Phthalate (DBP) prices in North America trended downward, driven largely by decreased demand from the construction sector. The housing market experienced a significant slowdown, with sales of new single-family homes in the U.S. dropping to their lowest level in seven months by June. High mortgage rates and rising home prices have dampened demand, impacting the consumption of DBP.
The Commerce Department's Census Bureau reported a 0.6% decline in new home sales, adjusting to an annual rate of 617,000 units in June, the weakest performance since November. This downturn reflects broader challenges in the housing sector that contributed to reduced demand for construction materials. Throughout the quarter, inventory levels of DBP were adequate, as the market was well-supplied despite the lower demand. This equilibrium in supply and inventory further reinforced the bearish pricing trend.
In summary, the Q2 2024 market for Dibutyl Phthalate in North America remained bearish, influenced by the sluggish construction sector and sufficient inventory levels. The drop in new home sales and steady supply conditions were key factors in the continued decline of DBP prices during the quarter.
APAC
In Q2 2024, the APAC region experienced a steady decline in Dibutyl Phthalate (DBP) prices. This downward trend was primarily due to an oversupply in the market that significantly exceeded moderate demand. Low upstream material prices and high inventory levels contributed to reduced domestic prices. Additionally, falling import prices from South Korea, driven by weak demand and decreased production costs, further supported the bearish pricing trend across the region.
In India, where price fluctuations were most pronounced, DBP pricing trends were notably negative. The market faced an oversupplied situation caused by increased imports and high inventory levels. Despite a strong demand from the construction sector, these factors exerted downward pressure on prices. Additionally, reduced production volumes due to limited working hours during a severe heatwave further impacted supply chains.
Seasonal procurement activities provided some support to demand, but overall market conditions remained bearish. Comparing the first and second halves of the quarter, prices declined by approximately 2%, reflecting seasonal influences on procurement and supply-demand dynamics. Prices also decreased by about 5% from the previous quarter, indicating a persistent negative trend.
By the end of the quarter, DBP prices in Delhi NCR stood at USD 1588/MT, highlighting the ongoing downward pricing environment. The overall sentiment for the quarter was negative, driven by high supply, moderate demand, and seasonal factors, with no significant plant shutdowns affecting the market.
Europe
In Q2 2024, the European market for Dibutyl Phthalate (DBP) experienced a bearish pricing trend. The primary driver of this decline was the subdued downstream demand, particularly from the construction sector, which saw a noticeable drop-in activity during the first two months of the quarter, as reported by Eurostat. The reduced demand from this key end-use sector significantly impacted the overall market for DBP.
During this period, inventory levels remained adequate due to a moderate supply of DBP from the Asian market. Although there were logistical challenges, such as shipping delays and increased freight costs, these issues did not heavily disrupt the supply chain. The stable influx of DBP from Asia ensured that European markets had sufficient stock, which further contributed to the downward pressure on prices.
The combination of diminished demand and ample inventory led to a persistent decline in DBP prices throughout the quarter. In summary, Q2 2024 saw a continued bearish trend in Dibutyl Phthalate prices in Europe, driven by low demand from the construction industry and sufficient inventory levels. The moderate supply from Asia, despite logistical challenges, did not counteract the prevailing downward pricing pressures.
