For the Quarter Ending March 2023
North America
This quarter, the trading fundamentals of Iso-Butanol in the North American region improved with high market fundamentals and low product inventories among the significant producers. In March 2023, the price of Iso-Butanol in the US surged to USD 2486/ton FOB Louisiana. Iso-Butanol export offers traded higher this month, supported by a strong purchasing urge from the downstream enterprises to cope with the industrial demand. Exports of Iso Butanol from the USA to the South American region increased with the elevated premium cargo offers. Downstream Paint and coating industries remain bullish, with insufficient inventories among the ports. Significant producers raised their offers for the domestic and overseas markets as demand exceeded the supply.
Asia Pacific
In Q1 2023, the Iso-Butanol market in the Asia-Pacific region elevated with the continuous utilization of inventories and strong product demand among enterprises. The demand for Iso-Butanol from the downstream Paint and coating industries remains steady with continuous gain in trading fundamentals. Imports of Iso-butanol from Europe to the Asian market were tepid, but the producers raised their offers to sustain their profit margin and revenue. During Feb 2023, the price of Iso-Butanol in China surged to USD 1095/ton Spot Ex-Qingdao. Towards the end of the quarter, market participants cited lower offers to the downstream Paint and coating industries, and sufficient stocks limited the trading fundamentals.
Europe
In the European market, the Iso-Butanol prices slumped with limited demand and cautious stance from downstream Paint and coating ventures. An increase in inventories and adequate supply in the market declined the price trend. Trading activities also remain feeble as the market participants sought offers discounts on bulk purchases. In March 2023, the price of Iso-Butanol in Germany declined to USD 1837/ton FD Hamburg. Limited bids and offers of Iso-Butanol from the downstream enterprises due to oversupplies hampered the market trading activities in the European market. Exports from Germany to the other European market also declined, with shrinking profit margins and sales among the significant producers.
For the Quarter Ending December 2022
North America
In the USA, the price of Iso-Butanol showcased a feeble price trend with declining spot prices. Export prices of Iso-Butanol from the US to the South American region declined this month with limited trading in the regional market. A potential pressure of an increasing number of cargoes this quarter forced the producers to provide discounts on the prices to clear their inventories. In Dec, the price of Iso-Butanol in the USA declined to USD 2135/ton FOB Ohio. Iso-Butanol demand declined from downstream Paint and Coating markets, allowing sufficient inventories to accumulate and lower bidding. The loss in benchmark futures, driven by the weak feedstock Propylene market and rising export in overseas supply, has caused sufficient inventories in the region.
Asia Pacific
Asia Pacific market traced the Northward price trajectory and gradual increase in trading offtakes resulting in a strong price trend. With the rising demand for Iso Butanol from the downstream construction industry, the prices gained a stance with strong market fundamentals. Such a price trend is observed with continuous consumption of inventories among enterprises and high purchasing activity. Imports in China from Germany surged with a revision in the price trend for Chinese suppliers. In Dec, the price of Iso-Butanol in China surged to USD 950/ton CFR Qingdao. The downstream of iso-butanol mainly consumed the raw materials in the early inventory, and the overall market demand improved.
Europe
In the European market, the market fundamentals of Iso-Butanol remain fragile, with limited trading activities and continuous increments in inventories. The price trend of Iso-Butanol declined this quarter when compared with the previous one. Recession fear and uncertain economies in Europe also affected the price trend of oxo alcohol. Exports of Iso-Butanol from Germany to the overseas market declined, and major producers cut production rates to avoid further stockpiling. In Dec, the price of Iso-Butanol in Germany declined to USD 1954/ton FD Hamburg. Demand for Iso-Butanol declined from the downstream Paint and coating market, augmented sufficient inventories, and lower bidding.
For the Quarter Ending September 2022
North America
In Q3 2022, the trading activity of Iso Butanol among the suppliers increased compared with the previous quarter. With rising energy and utility costs. The feedstock Propylene prices also elevated in the region, affecting the product's price dynamics. Towards the end of the quarter, the price of Iso Butanol in the US surged to USD 2565/ton FOB Louisiana. The price hike in Iso-Butanol caused several disruptions in downstream Paint industries. Significant US multinational companies increased their additives prices for paint and coating industries. Exports of Iso butanol from the US to other North American regions' elevated price trend helped the producers sustain their profit margins.
Asia Pacific
This quarter, the price of Iso Butanol faced the South in the wake of weak purchasing activity and lower product demand in the region. At the start of the quarter, the price of Iso Butanol in China declined to USD 1271/ton CFR Qingdao. The decrease in currency rates of the domestic Yuan compared to the dollar negatively impacted the overall values. At the same time, the product offtakes remained moderate from the domestic market due to the lack of demand in the downstream phthalate industries. It reduced the downstream cost support on the product values, and producers decreased their market price quotations.
Europe
In the European region, the price of Iso Butanol declined in the first two months of this quarter, prompted by weak market offtakes and lower bidding for fresh stocks. In August, the market of Iso Butanol declined to its lowest with the price trend of USD 1925/ton FD Hamburg. However, in Sept 2022, the prices gained a stance in the wake of low inventories and limited supply in the region, forcing the producers to revise the product's prices. Regarding existing stocks, some production companies tend to increase their ex-factory quotations. Driven by Iso Butanol futures, production companies' installations overhauled, and higher bidding, prices elevated in the European region.
For the Quarter Ending June 2022
North America
Following the previous quarter's trend, the price trend of Iso Butanol remained strong, and the values upsurged consistently, indicating a significant quarterly increment of 22.4% in the values from Q1 of 2022 in the North American region. After the global inflation due to sanctions on Russia and supply chain disruption, crude oil prices shifted globally. Fluctuations in upstream Naphtha and feed propylene prices due to the volatile Crude oil market upsurged the product prices substantially by almost 13% during the first half of the Q2. The price trend persisted with marginal upward inclinations till the end of Q2 due to consistent demand for Iso Butanol in the downstream phthalate and paint industry for the construction and automotive sectors.
Asia
In the Asian region, the price trend of Iso Butanol remained uncertain due to volatility in upstream Naphtha and crude oil prices, which impacted the feed propylene prices in the region. In India, an increase in Russian Crude oil imports at low prices and decreased feed and upstream costs plummeted the quarterly prices of Iso Butanol by 5.5%. While, in China, frequent lockdown and port congestion, along with the piled-up stock of inventories, caused uncertainty in market dynamics. Plus, an increase in freight and energy rates rose the price by 5.9% during Q2 of 2022 in China, while the demand for the material was stable in the downstream Dibutyl Phthalate manufacturer and paint industries.
Europe
The price movement of Iso Butanol shifted in the European region with some significant fluctuations during Q2 of 2022. Post a significant rise in feed propylene prices with an escalation in energy costs in the region post-global inflation, the price of Iso Butanol rose substantially by almost 26% in the first half of Q2. After that, the stable demand sentiments from the Dibutyl Phthalate and paint manufacturers decreased the product prices marginally during the mid-quarter. However, prices rose again towards the end of Q2 due to an increment in downward cost pressure caused by the region's rise in energy and fuel costs and an overall quarterly surge of 30.2% seen in the values.
For the Quarter Ending March 2022
North America
In North America, the price of Iso Butanol in the first half of Q1 2022 increased due to limited availability and low inventories. Towards the start of the month, the price of Iso Butanol was observed to be USD 1990/ton FOB Louisiana. But by the end, it was steadily due to weak demand from downstream markets such as areas like agriculture, auto products, and adhesives. Low import demands from Europe and Asia from the USA due to the Russia-Ukraine war due to oversupplies in the region have reduced Iso Butanol prices. Impact on supply because of low raw material costs and logistics problems across the region caused surging of prices in the first half of Q1 2022.
Asia Pacific
The prices of Oxo-alcohol Iso Butanol were following an upward trajectory in the Asian market due to rising raw materials cost which was the prime factor for steep escalation. The conflict between Russia and Ukraine led to increase in the price of upstream crude oil which directly affected the price of feedstock propylene and isobutyraldehyde. Despite the demand for the product from the downstream market which are maintaining overall stability, manufacturers heard raising their offers for local and international market in India and China. Traders revealed that prices increased to the upper end due to global price hikes. In China, the price of Iso Butanol towards the end of the month observed to be USD 1595/ton Spot Ex-Qingdao.
Europe
The trend for the price of Iso Butanol was spotted to be increasing and went up to USD 2025/ton FD Hamburg, due to surge in demand from the downstream paints and coatings sector as well as from fuels and fuel additives. Inflation pressure due to rising crude oil values have been pressurising global traders and convertors to raise their offers in order to sustain profitability. High demand from the downstream sector supported the price of Iso Butanol during the first half of 2022.
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.
