For the Quarter Ending September 2025
North America
• In the USA, the Iso-Butanol Price Index fell quarter-over-quarter, reflecting oversupply pressure broadly.
• The average Iso-Butanol price for the quarter was approximately USD 1224.67/MT.
• Iso-Butanol Spot Price remained subdued as suppliers rolled quotations amidst weak paints and coatings enquiries.
• Iso-Butanol Production Cost Trend showed moderate upward pressure from propylene, yet prices lacked pass-through broadly.
• Iso-Butanol Demand Outlook remains weak as construction and coatings sectors continue digesting inventories into autumn.
• Iso-Butanol Price Forecast indicates sideways-to-soft near-term movement absent feedstock or demand shocks over coming weeks.
• Elevated inventories and muted export demand continued to weigh on the Iso-Butanol Price Index momentum.
• Gulf Coast units largely operated steadily, supporting flows and tempering Iso-Butanol Production Cost Trend impacts.
Why did the price of Iso-Butanol change in September 2025 in North America?
• Ample domestic production and steady feedstock availability maintained supply, pressuring Iso-Butanol spot pricing during September.
• Weak downstream demand from paints, coatings and construction reduced offtake, causing downward Price Index pressure.
• Increased lower-priced Asian imports and cautious buying kept inventories high, limiting meaningful domestic price recovery.
APAC
• In Japan, the Iso-Butanol Price Index fell by 6.23% quarter-over-quarter, reflecting subdued demand.
• The average Iso-Butanol price for the quarter was approximately USD 1644.67/MT, reflecting lower spot activity.
• Iso-Butanol Spot Price remained pressured by discounted imports and weak coatings demand, limiting upside prospects.
• Iso-Butanol Price Forecast suggests stabilization into Q4 as suppliers consider restocking amid tighter feedstock costs.
• Iso-Butanol Production Cost Trend showed minor easing, though rising Propylene costs could pressure margins later.
• Iso-Butanol Demand Outlook remains weak as coatings and construction sectors defer buying amid inventory destocking.
• Iso-Butanol Price Index was undermined by abundant port stocks and efficient logistics enabling competitive imports.
• Major domestic maintenance events had limited impact as suppliers liquidated stocks, keeping market offers unchanged.
Why did the price of Iso-Butanol change in September 2025 in APAC?
• Ample import volumes and port inventories reduced domestic price leverage, sustaining bearish pressure during September.
• Weak coatings and construction demand, combined with just-in-time procurement, curtailed spot purchases and pressured prices.
Europe
• In Germany, the Iso-Butanol Price Index fell by 2.54% quarter-over-quarter, reflecting weak downstream demand seasonally.
• The average Iso-Butanol price for the quarter was approximately USD 1150.00/MT. and indicative of prevailing inventory-driven bearish conditions.
• Iso-Butanol Spot Price remained range-bound amid balanced supply and curtailed operating rates across German hubs.
• Iso-Butanol Price Forecast anticipates consolidation into Q4 as restocking offsets weak industrial demand and logistics.
• Iso-Butanol Production Cost Trend eased as propylene availability improved, but recent feedstock volatility raised uncertainty.
• Iso-Butanol Demand Outlook stays muted with construction and coatings weakness further constraining downstream offtake volumes.
• Iso-Butanol Price Index reflected inventory liquidation, planned turnarounds, and Euro appreciation reducing export competitiveness across markets.
• Producers offered cautious pricing, liquidating inventories while monitoring propylene costs and logistic constraints ahead of Q4.
Why did the price of Iso-Butanol change in September 2025 in Europe?
• Sufficient inventories and weak downstream demand prevented price increases despite occasional feedstock-driven cost upward pressure.
• Logistic congestion reduced export demand, while domestic procurement remained cautious post-summer holidays.
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.
