For the Quarter Ending June 2025
North America
• The Iso-Butanol spot price in North America declined by 1.6% quarter-over-quarter in Q2 2025, reflected in a declining Price Index.
• Low demand conditions from the primary construction sector and automotive sector continued to remain the prime factor for the downward pull on the prices.
• Procurement activity remained as per need only basis due to lower offtakes from the paints and coating sector which kept the bearishness of the market mostly intact
• Trade war from the primary importer Chinese and North American markets led to sluggish export activity as buyers from Asia pulled out from market discussions
• Export conditions to the primary Mexican and Canadian markets remained low amidst a decline in weekly railcar loadings
• Suppliers were heard to have been moving backlogged inventories at lower prices
Why did the price of Iso-Butanol change in July 2025 in the US?
• In July 2025, the Price Index of Iso-Butanol was reported to have declined as procurements sentiments dampened during the official start of the North Atlantic Hurricane Season
• Post the 4th of July 2025 holidays suppliers were heard moving inventories at lower prices
• Uncertainty in trade conditions largely kept procurement from abroad low during the month which resulted in a downward pull to the prices
Europe
• The Iso-Butanol spot price in Europe declined by 0.73% quarter-over-quarter in Q2 2025, reflected in a softer Price Index.
• Lower production costs witnessed as indicated by drop of 14% in the prices of feedstock Propylene.
• Low demand conditions from the primary construction sector continued to remain the prime factor for the downward pull on the prices
• Export demand and conditions remained sluggish amidst the Euro appreciation, congestions witnessed across the Northwest European ports which continued to impart a bearish pressure on the prices
• European originated Iso-Butanol inventories faced competition from Asian and North American suppliers as Turkish buyers leaned away from higher priced European cargoes in favour of more attractively priced Asian and North American originated inventories.
• Despite producers have been heard maintaining curtailed run rates to lengthen the market situation, suppliers were heard moving backlogged inventories at lower prices which maintained the bearish conditions persistent in the market.
Why did the price of Iso-Butanol change in July 2025 across Europe?
• In July 2025, the Price Index of Iso-Butanol was reported to have decreased because of inactive market amidst the seasonal summer holidays.
• Suppliers were to have been moving backlogged inventories at lower prices leading toa broadly bearish market fundamentals.
• Market players have mostly expressed pessimism in the demand conditions from the construction industries and in the paints and coating sectors
APAC
• The Iso-Butanol Price Index in the APAC region declined by 1.8% on a quarter-over-quarter basis in Q2 2025, primarily driven by a persistently oversupplied market, especially in Japan and surrounding East Asian countries.
• Material availability remained ample throughout the quarter, as the Japanese market experienced delayed cargo arrivals in April and steady inflows of Chinese-origin cargoes in May, which maintained downward pressure on the Price Index despite moderate domestic consumption.
• Feedstock Propylene prices trended downward across Asia during the quarter, aided by higher PDH (Propane Dehydrogenation) plant operating rates in June, which helped reduce input costs for Iso-Butanol producers and contributed to a stable-to-soft Price Index.
• Demand fundamentals were mixed, with moderate support from paints and coatings applications amid intermittent construction recovery in April and May; however, a sharp decline in Japan’s housing starts in June and persistent weakness in the automotive sector curtailed any substantial upward momentum in the Price Index.
• Despite temporary supply tightness due to reduced exports from China and Taiwan in June, the impact was largely offset by falling upstream costs, stable freight rates, and subdued demand, ultimately keeping the Price Index on a mildly downward trajectory across the APAC region for Q2 2025.
Why did the price of Iso-Butanol change in July 2025 across APAC?
• In July 2025, the Price Index of Iso-Butanol was reported to have decreased as the seasonal onset of the rainy season across Asia continued to lead to weaker enquiries from customers
• Competitively priced inventories originating from China and Southeast Asia continued to enter at competitive prices amidst expansion in capacity and lower intra-Asia freight charges
• Chinese suppliers were aggressive in offloading existing inventories which resulted in Chinese suppliers moving their cargoes at lower prices across the broader Asian market
• The return of major producer and supplier in Taiwan namely Formosa Chemical to production during mid-July 2025 is likely to have improved supply conditions across the broader Asian market.
For the Quarter Ending March 2025
North America
The North American Iso-Butanol market experienced a 6.4% increase in Q1 2025, bolstered by rising production costs, maintenance turnarounds, and logistical disruptions. In January, U.S. suppliers maintained ample inventories as producers worked to reduce excess stock in anticipation of potential supply issues due to labor contract expirations. Imports were limited by Nan Ya Plastics’ facility downtime, which curtailed the influx of imported Iso-Butanol.
Exports saw a 7% increase in railcar loadings, signaling a slight market recovery, but domestic demand remained subdued, particularly in the paints and coatings sector. In February, rising Propylene feedstock prices, driven by reduced refinery run rates, supported the market, though suppliers kept prices stable by rolling them over. Export demand to Asia remained low due to Lunar New Year closures and extended anti-dumping duties.
By March, the market eased further as major producers resumed production, and a 6% drop in freight charges led to lower import prices. Despite this, domestic prices remained relatively high due to constrained production. Demand remained weak across key sectors, sustaining bearish market conditions.
Europe
The European Iso-Butanol market surged by 13% in Q1 2025, driven by rising production costs and price hikes, despite weak demand from downstream paints and coatings industries due to the underperformance of the construction sector. In January, despite efforts to curb output, abundant inventories and sluggish consumption led to price declines, with port congestion in Hamburg exacerbating supply build-up. Demand remained muted amid extended holidays and minimal manufacturing activity. In February, production costs rose following a 4.3% increase in feedstock Propylene prices, with run rates at some plants dropping to 60%. Supply constraints were intensified by ongoing Propylene shortages and logistical bottlenecks, prompting major producers like OQ Chemicals to announce price increases. However, demand remained weak, especially from Iso-Butyl Acetate and Acrylate sectors. In March, feedstock Propylene rose another 8%, escalating Iso-Butanol production costs. Vessel tightness and plant outages limited availability, sustaining upward price pressure. Though suppliers began restocking ahead of spring, Iso-Butanol remained the least in demand among oxo-alcohols. The German construction sector's continued downturn, marked by low tender activity and new orders, further weighed on market sentiment.
APAC
The APAC Iso-Butanol market witnessed a decline of approximately 3.6% during Q1 2025, primarily driven by subdued demand and ample supply. In January, limited production due to maintenance at Nan Ya Plastics and reduced PDH unit run rates curtailed output, but prices fell amid weak demand and a 6% drop in intra-Asia freight charges. Despite high production costs, ample inventories and minimal offtakes in downstream sectors, such as Iso-Butyl Acrylate and Acetate, kept prices from rising. In February, Japanese prices rose slightly following price hikes from OQ Chemicals and Mitsubishi Chemicals, driven by tighter availability due to ongoing maintenance in Taiwan and South Korea. However, a 12% drop-in freight rates and weak demand, especially from the construction sector, offset gains. In March, prices declined further as feedstock Propylene prices dropped 1%, production costs eased, and PDH run rates improved. Chinese suppliers also reduced prices, increasing competitive pressure. Japan’s construction sector remained a key drag on demand, with housing starts falling for the ninth consecutive month, exacerbating bearish sentiment across the Iso-Butanol market.
For the Quarter Ending December 2024
North America
The U.S. Iso-Butanol market witnessed a predominantly bearish situation, with prices falling by approximately 31% due to ample supplies circulating across the market. Despite disruptions caused by the hurricane season, which affected production and logistics, U.S. suppliers were reported to have built large inventories, continuing to drive bearish market conditions. Although some producers, like Eastman Chemicals, attempted to improve the market situation by announcing a price hike of USD 110/MT for October deliveries, these efforts were largely ineffective.
Demand conditions remained weak throughout the quarter, with a decline in construction spending continuing to retain the bearish momentum. Export conditions for Iso-Butanol were further negative due to the strike between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX). Although the strike lasted for only 3 days, the backlog of vessels led to inventory accumulation at ports.
Toward the end of the quarter, destocking activities prevailed, with U.S. suppliers under pressure to liquidate inventories amidst fears of end-of-year tax repercussions and inventory devaluation, which further exacerbated the bearish market sentiment.
Europe
The European Iso-Butanol market witnessed a depreciation of approximately 12% during the last quarter of 2024 due to ample supplies amid low demand conditions. Following OQ Chemicals' return to production in early May, the market struggled to recover from its bearish trend, as demand from primary sectors like paints and coatings remained weak. The downturn persisted throughout the latter part of the quarter, with destocking activities intensifying as early as mid-November 2024. Producers faced challenges in passing on higher feedstock Propylene costs to customers, further pressuring the market. Arbitrage opportunities in and out of Europe remained largely closed, and inland trading encountered disruptions, exacerbated by maintenance at several ports in Northwestern Europe. These issues hindered product flow, leading to inventory accumulation and further price declines. Toward the year’s end, producers attempted to stabilize the market by reducing production, but these efforts were largely unsuccessful. The European Iso-Butanol market was marked by limited outages and ample supplies as suppliers sought to move inventories in bulk to avoid tax repercussions. This effort to clear stocks became a dominant factor behind the persistent bearishness observed in the market.
APAC
The Asian Iso-Butanol market witnessed a predominantly bullish market situation, with prices rising by approximately 6% as supplies remained constrained from the exporting Taiwanese market. Seasonal hurricanes across the South China Sea caused disruptions, leading to limited arrivals of Iso-Butanol inventories in Japan. Midway through the last quarter, major producers such as JNC Corporation were reported to have announced price increases of approximately Yen 15,000/MT, which continued to drive prices upward. Furthermore, towards the end of the year, major producers like Formosa Plastics and Nan Ya Plastics were reported to have undergone maintenance turnarounds, which further tightened supplies to the Japanese market. Demand conditions remained predominantly negative, with the downturn in Japan’s construction sector persisting throughout Q4 2024. In the domestic market, lower production was further reported due to low operating rates of PDH units across East Asia, which continued to propel the market upward despite weak demand.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American isobutanol market faced significant challenges, leading to a notable decline in prices driven by a confluence of adverse factors. The market was primarily impacted by weakened demand from downstream industries, which failed to recover amid seasonal fluctuations, despite one of the majore producers of Iso-Butnaol namely Eastman Chemicals increasing the prices by USD 110/mt from August 1, 2024 as per the release dated July 17, 2024. Despite some production disruptions due to shutdowns in feedstock propylene, the overall demand remained lackluster, contributing to a bearish pricing environment. During this quarter, unfavorable export conditions further exacerbated the situation. Strikes organized by the International Longshoremen's Association disrupted shipping and logistics, complicating the already strained supply chain.
Additionally, the ongoing hurricane season posed further production challenges, affecting operations in critical manufacturing areas across the USA. As a result, the pricing landscape for isobutanol experienced a consistent downward trajectory, particularly in the United States, which recorded the most significant price fluctuations. Prices plummeted by 12% compared to the same period last year, reflecting a stark contraction in market value. This decline was not just a year-over-year trend; the quarter saw a 3% decrease from the previous quarter of 2024, underscoring the persistent pressure on prices.
Moreover, a comparison of pricing from the first half of the quarter to the latter revealed an additional 2% drop, further indicating the ongoing bearish sentiment. By the end of the quarter, the price of isobutanol settled at USD 2,120/MT DDP Texas, a figure that encapsulates the overall negative sentiment prevailing in the market
APAC
In the third quarter of 2024, the Asian isobutanol market experienced a pronounced bearish trend, with prices plummeting by over 23% by the quarter's end. This decline was primarily driven by an oversupplied market that continued to exert downward pressure on prices. Formosa Plastics Corporation, a key producer in the region, maintained its Mai Liao facility’s run rates at 100% capacity, producing 240,000 metric tons of isobutanol. Similarly, Luxi Chemical, with a production capacity of 300,000 metric tons per year, also kept its run rate steady at 100% throughout the quarter, contributing to an overall supply glut. This situation resulted in historically low prices for isobutanol across the Asian market. Despite moderate availability of feedstock propylene—which was expected to impact production—the continued high supply overwhelmed demand. Furthermore, a downturn in the construction sector limited demand from the paints and coatings industries, further exacerbating the price decline. The combination of abundant supply and subdued demand created significant challenges for the isobutanol market in the region.
Europe
In Q3 2024, the European isobutanol market experienced a downward trend in prices, with a notable 7% decline compared to the same quarter last year. This downturn was largely attributed to weakened demand from downstream industries, particularly paints and coatings, coupled with an oversupply of propylene that helped reduce production costs. Despite the challenges, the market showed signs of normalization with the return of OQ Chemicals to production early in the quarter. However, in August 2024, disruptions arose as many propylene plants temporarily shut down for maintenance during the summer holidays. This included Shell Chemicals declaring a force majeure at its production site in Moerdijk, Netherlands, which resulted in decreased isobutanol output across Europe. To counteract the continuous bearish market conditions, OQ Chemicals implemented a price increase of $110/MT in the European market. By September 2024, most propylene plants resumed operations, along with the arrival of propylene cargoes from the Middle East and Asia, leading to a supply glut that further intensified the bearish market sentiment. Germany, in particular, experienced significant price fluctuations, with a 3% decrease from the previous quarter and a 1% drop between the first and second halves of the quarter. While some stability returned, overall market conditions remained negative, influenced by subdued construction activity and poor performance in the housing sector. By the end of the quarter, the price of isobutanol in Germany was recorded at $1,160/MT FD Hamburg, reflecting ongoing downward pressure in the pricing environment. The quarter highlighted the ongoing struggle to balance supply and demand amid challenging market conditions.
FAQ’s
1. What factors influence the price of Iso-Butanol in the market?
Iso-Butanol pricing is primarily influenced by feedstock costs (notably Propylene), supply-demand dynamics, production rates at regional oxo-alcohol units, international trade flows (particularly from China, Taiwan, and South Korea), and freight costs across intra-Asia routes.
2. How do fluctuations in Propylene prices affect Iso-Butanol pricing?
As a key feedstock, Propylene price trends directly impact the production cost of Iso-Butanol. A decline in Propylene prices typically lowers manufacturing costs, which can lead to downward pressure on the Iso-Butanol Price Index, assuming stable demand.
3. Why do import volumes from countries like China and Taiwan impact Iso-Butanol prices in other regions?
Export volumes from major suppliers such as China and Taiwan significantly affect regional supply availability. Reduced exports from these countries can tighten supply in importing regions, potentially supporting or increasing the Iso-Butanol Price Index, while oversupply from these regions can suppress prices.
4. What role does the construction sector play in determining Iso-Butanol prices?
The construction industry is a major consumer of paints, coatings, and adhesives, which rely on Iso-Butanol as a solvent. A surge or slump in construction activity directly influences downstream demand and can either support or weaken the Price Index.
5. How do logistics and currency fluctuations influence Iso-Butanol pricing?
Port disruptions, freight cost changes, and currency movements (like a stronger yen or yuan) can affect landed costs of imported Iso-Butanol. These factors often shape supplier pricing strategies and, in turn, impact the overall Price Index in regional markets.
