For the Quarter Ending December 2021
North America
Iso-Butanol prices maintained overall stability across USA market during this quarter. Key manufacturers heard revising their offers to sustain their profitability as input cost have increased exponentially for makers. During the month of November, Crude price fell sharply during Asian trading with ICE Brent future falling amid heightening concern of oversupply of crude oil and rising fears over COVID related uncertainties. As the upstream prices declined, the supply started exceeding the demand from the country’s paint manufacturers. Consequently, by the end of December month, prices showcased overall buoyancy compared to past few months. Thus. Iso Butanol price stood around USD 1963/MT FOB during December in USA.
Asia
Asian Oxo Alcohols makers have been witnessing demand dullness since a long time, where prices kept have been free falling consistently. Indian makers heard waiting to see improvement in demand from the domestic market, which happened during November post arrival of festive season in the country. However, prices remained dull despite improved offtakes from acrylate manufacturers of the country. Demand fundamentals for acrylates varied country over country in APAC region. South Korean demand for Acrylates remained buoyant compared to previous quarters, as import as well as domestic production improved effectively. Furthermore, Dual energy policy in China constrained domestic buyers from keeping their acrylates production on track, which reduce the overall demand for Oxo Alcohols in the market. Iso Butanol prices heard hovering around USD 1208/MT CFR During December.
Europe
European market kept on oscillating throughout the fourth quarter of 2021, on the back of pandemic related restrictions and sudden change in energy prices. During the first month of the quarter, manufacturers were cautious about high input cost, as natural gas prices were soaring all across European region. However, wavering demand from the regional market coupled with negligible enquiries from Asia pushed down the price of Iso Butanol in Europe during November, which later showcased marginal improvement by the end of December.
For the Quarter Ending September 2021
North America
In the North American region, the supply of oxo-alcohols improved in the 3rd quarter after witnessing constrained supply fundamentals in the previous two quarters. Demand remained firm throughout Q3 where the paints and coating sector flourished as the US economy recovered after experiencing a significant decline in Q2. The downstream construction sector particularly residential buildings had been a key factor driving the demand for all oxo-alcohols in the region. Texas has been the critical hub for Iso Butanol, and it was severely impacted by the freeze fallout than other petrochemicals in Q3. Supply chains recovered significantly, however demand push sent the prices in upward momentum. Disruptions towards the end of the quarter impacted supply in a later stage as raw material costs increased drastically along with logistics problems across the region.
Asia
The Asian market witnessed a significant rise in the prices of Iso Butanol during the third quarter of 2021. In the Indian market, Iso Butanol gained stability in the 2nd quarter as the prices were already running very high. Traders revealed that prices were already floating at their peak due to global price hikes and they were expecting coolness at prices in this quarter. However, no drastic change or decline was observed for Iso Butanol, but traders are speculating on further reduction, which may help them to improve their profit margin. Iso Butanol prices skyrocketed from USD 1781/MT to USD 2220/MT from July to September in 2021.
Europe
The overall market outlook of Iso Butanol demonstrated an upward trend in the European region during Q3 2021. Supplies remained constrained in the 3rd quarter owing to unplanned turnarounds of some manufacturing units in Europe. Due to the supply restrictions, a European manufacturer of oxo intermediates and oxo derivatives declared force majeure for iso-Butanol and other products with immediate effect in September, which led to the increased prices of the product across the region. Demand for Iso Butanol from downstream paints and coatings sector remained firm in Q3.
For the Quarter Ending June 2021
North America
The North American market had firm demand for Iso Butanol (IBA) during Q2, backed by improved offtakes from the downstream sectors. Prolonged shortage of the feedstock Propylene led to an extreme rise in its prices during this quarter in USA. Due to this shortage, price of Iso butanol (IBA) rose effectively throughout the quarter, while gaining support from the downstream user segment. The downstream construction sector suddenly picked up the pace that increased the consumption of IBA from the paints and coatings sector. However, traders were struggling to procure cargoes from the domestic market, but due to lack of proper availability, prices gained an upward momentum. Thus, the price of Iso butanol were assessed around USD 2545/MT during end of June in USA.
Asia
Iso Butanol showcased firm sentiments during this quarter in Asia, backed by stable to firm demand from the downstream sector. The price increased significantly while the demand remained in a modest to stable range in the Asian market in the meantime. Majorly spill over effect was observed in the Indian Iso Butanol market, where the demand fluctuated in a narrow range due to second wave of pandemic, but the prices kept on rising due to the global price hike. However, in China, prices kept on rising due to firm domestic demand and soaring international prices. Thus, the overall Asian market witnessed an upward price movement with Iso Butanol prices in India hovering around USD 1639/MT during the last week of June.
Europe
Europe also experienced an upward price trend during this quarter backed by improving domestic market condition as an after effect of pandemic recovery. The construction sector was improving month over month, thereby supporting the demand for Iso Butanol from the paints and coatings sector. In addition, global price hike for Iso Butanol also affected the European market, as imported cargoes were getting expensive and soaring freight cost also exacerbated the overall price scenario.
For the Quarter Ending March 2021
North America
North America Petrochemical sector kneeled to its lowest level under the freezing storm, in February 2021. This rare climate calamity halted almost 80% of the total US output, and hence affected the prices across the region. Major petrochemical plants remained idled during this period, like OQ chemicals announced an abrupt shut down of their Iso Butanol plant with a capacity 240,000 MT per Year due to unfavourable weather conditions. Meanwhile, Iso Butanol prices by +USD 220.7 per MT across the region.
Asia
Asian market encountered critical shortage of Iso Butanol amidst high demand from domestic downstream chemicals manufacturers like resins, lacquer solvent etc. Global crisis of solvent and continuous gain in value by crude oil primarily affected the prices of Iso Butanol across the region. Prices of Iso Butanol in the Indian market rose by 48.23% from January to March 2021, while in the Chinese market prices rose by 77.78% within the quarter and settled down at USD 1600/MT till March end.
Europe
Europe faced high shortage of Iso Butanol amid sufficiently high demand from downstream sectors, which supported its prices during this timeframe. Lower trade activities across Asia and significantly increment in the Middle East crude oil prices significantly affected the domestic prices of Iso Butanol across the region. While the demand from lacquer solvent remained higher than expected due to ongoing global solvent crisis.
For the Quarter Ending September 2020
Asia
The Asian Iso Butanol sentiments took a driver’s seat in the third quarter as end use industries resumed production with few operating at their maximum capacities under hopes of recovering the loss incurred in the previous quarter due to the coronavirus contagion. Consistent revival in values of the upstream crude also contributed well towards uplifting the market fundamentals in the region. As several countries in Asia primarily cater to their domestic demands through imports, trade constraints from Europe resulted in supply shortage.
North America
The North American Iso Butanol market witnessed promising gains in the third quarter with revival in demand from rubber sector. However, the production cuts implemented in many petrochemical plants in the region due to the fear of Hurricane Laura which has dragged the export potential of the leading producers pushing their revenues lower in comparison to the previous quarter. Traders are buoyant over increased purchasing from the eastern countries in early October on stock piling of Iso Butanol to abate the supply shortage ahead of China’s National Day holiday in October.
Middle East
Import demand for the middle east petrochemicals largely improved in the third quarter with increased production from the end use industries on revival in market activities after coronavirus plateaued in majority of economies throughout the world. Firming values of upstream crude further provided support to margins of derivatives such as Iso Butanol following strong market dynamics in Asian and European countries. However, curtailed production due to maintenance outages in few of the plants exerted a downward pressure on the export revenues.
