For the Quarter Ending March 2025
North America
In the first quarter of 2025, the USA’s Iso Butyric Acid market underwent with an uptick of 0.99% in prices, compared to the fourth quarter of 2024. Despite the devastating fall received in January, Iso Butyric acid gradually and consistently performs well on a month-to-month basis. This upward trend was highly driven by strong demand from the downstream industries such as esters, food & beverages, perfume and cosmetics.
Unlike the APAC region, North America particularly the United States has managed to bring stability to their Iso Butyric Acid exports. By maintaining consistent production levels and holding good industrial practices, the United States has strengthened its position in the global market. Since February the United States has adopted a more strategic and focused approach to production industries, ensuring better alignment with demand trends. This disciplined production model has allowed the United States to avoid the oversupply issues affecting other regions and maintain a competitive edge in the international market.
APAC
China one of the major countries of APAC region observe a massive drop of 9.89% in the first quarter of 2025 compared to the last quarter of 2024. There are several key factors that influenced the drop in prices of Iso Butyric Acid which include soft demand environment particularly from the food processing sector, the off-season consumption of sugar, and escalating cost of feedstocks.
In India, the first quarter of 2025 has experienced significant challenges due to an oversupply of Iso Butyric Acid. The production levels continue to increase, and the inventory has reached its full capacity. However, supply has not been matched by corresponding growth in demand from downstream industries. The lack of sufficient consumption from key industries such as pharmaceuticals, flavor and fragrance manufacturing, and chemical processing has brought imbalance between supply and demand.
As a result, the market of Iso Butyric Acid is facing downward pressure on prices. Manufacturers are struggling to recover their margin, and the excess stock has become a growing concern. If this trend continues.
Europe
The Iso Butyric Acid market in Germany has experienced a noticeable upward trend in first quarter of 2025. This trend is driven by criticality of low supply and high demand. A significant surge in demand from downstream industries has contributed to the rising prices, moreover the supply constraints have played an equal role in curving market dynamics.
The series of plant shutdown across Europe, including in Germany has contributed to the Iso Butyric Acid price escalation. The shutdowns were scheduled due to maintenance, force majeure and technical failures have disrupted the production continuity of propylene, reduced the overall output of Iso Butyric Acid.
Logistics has also played a critical role in increasing the propylene feedstock prices, a key raw material used in the production of Iso Butyric Acid. The logistical challenge was caused by shipping delays around the Cape of Good Hope. The rerouting of vessels was done due to geopolitical tensions at Suez Canal. The alternative route has significantly extended the transit time and fuel costs. Such additional expense directly impacts the production cost of Iso Butyric Acid, inflating the prices.
For the Quarter Ending December 2024
North America
The Isobutyric Acid market in the United States experienced notable fluctuations in Q4 2024, driven by external factors and changing demand dynamics. In October, prices declined significantly due to the impact of hurricanes, which disrupted supply chains, production schedules, and logistics. The hurricanes affected key production facilities along the Gulf Coast, leading to temporary shutdowns and a reduction in the availability of Isobutyric Acid. As a result, the market saw softer demand and lower pricing during this period, as manufacturers and buyers adjusted to the supply chain disruptions.
However, in November and December, Isobutyric Acid prices began to recover as the situation stabilized. The resumption of production and the clearing of logistical bottlenecks contributed to an increase in supply, while industrial demand remained steady. As key sectors such as automotive coatings, chemicals, and personal care regained momentum, prices began to rise. Additionally, upstream feedstock costs stabilized, which further supported the price rebound.
While the market faced temporary setbacks in October, the recovery in November and December helped restore market confidence, though prices remained sensitive to ongoing supply chain dynamics. Overall, the Isobutyric Acid market in the U.S. showed resilience, with an upward price trend as the year closed which settled at USD 1430/MT on a FOB Houston basis.
APAC
In Q4 2024, the Isobutyric Acid market exhibited contrasting trends between China and India. In China, prices saw a decline in October due to softer demand and oversupply, with key industries like paints, coatings, and plastics experiencing slower production. However, from November to December, prices recovered as industrial demand picked up in anticipation of the upcoming seasonal demand, particularly ahead of the Lunar New Year. The price increases were also supported by stable upstream costs, including isobutene, though overall market activity remained moderate due to cautious buying and inventory adjustments. Despite the price recovery, the market sentiment in China was cautious, as global economic uncertainties and potential regulatory changes kept players hesitant.
In India, on the other hand, prices increased steadily throughout Q4 2024. Strong demand from key sectors, such as automotive coatings, personal care, and pharmaceuticals, coupled with limited local production capacity, drove the upward pricing trend. Additionally, rising import costs due to global logistical disruptions further supported the price hikes. As Indian manufacturers continued to invest in capacity expansion and higher-value-added products, the domestic market remained robust. The consistent price increases in India contrasted with China’s more fluctuating market, driven by a more stable supply-demand balance and stronger industrial activity.
Europe
In Q4 2024, the Isobutyric Acid market in Europe experienced a challenging environment, with fluctuating prices and moderate demand. One of the key factors influencing the market was the weakness in propylene, a primary feedstock for Isobutyric Acid production. Throughout the quarter, propylene prices remained subdued, which helped stabilize production costs for Isobutyric Acid. However, this also reflected broader market conditions, including lower energy prices and softer demand across several end-use industries. Despite the weak feedstock costs, Isobutyric Acid prices were affected by fluctuating industrial activity. The automotive and coatings sectors showed some recovery in November and December, leading to a slight uptick in demand, particularly for plasticizers and specialty chemicals. However, demand from the food and fragrance industries remained relatively stable, with no major shifts in consumption patterns. Import pressure from global markets, particularly from Asia, also added to competitive pricing dynamics, limiting the potential for significant price increases among European producers. Overall, European Isobutyric Acid prices remained relatively stable, with the weak propylene market serving as a limiting factor for significant price movements.
For the Quarter Ending September 2024
North America
Throughout Q3 2024, the pricing of Iso Butyric Acid in North America remained stable, reflecting a balanced market sentiment. The quarter witnessed a significant influence on market prices due to weak demand from various industries, including food processing, chemicals, and animal feed. Factors such as moderate supply levels, subdued downstream activity, and uncertainties in the economy played a crucial role in maintaining price stability. Additionally, reduced orders from overseas markets due to high freight rates further muted the demand for product.
In the USA, which experienced the most price changes, the market trends were consistent with the overall region. However, compared to the previous quarter in 2024, there was a slight increase of 1%, demonstrating a marginal shift in pricing dynamics. Notably, the price remained constant between the first and second half of the quarter, further emphasizing the stable pricing environment.
As Q3 came to a close, the latest price for Iso Butyric Acid in the USA stood at USD 1230/MT FOB Houston, highlighting the continued stability in pricing trends.
APAC
Iso Butyric Acid pricing in the APAC region during Q3 2024 has been marked by a consistent downward trend, influenced by various significant factors. The market has experienced declining prices mainly due to weak demand from downstream industries such as food processing and flavoring sectors. This subdued demand has been further exacerbated by elevated raw material costs, impacting the overall pricing dynamics. China, in particular, has witnessed the most significant price changes, reflecting the overall trend in the region. Moreover, there was a noticeable increase from the previous quarter in 2024, with a 4% rise. The second half of the quarter recorded a substantial decrease of 6% in prices, indicating a sharp decline in market conditions. The latest quarter-ending price for Iso Butyric Acid FOB Shanghai in China stood at USD 1390/MT, underscoring the prevailing negative pricing environment in the region. This quarter has been characterized by a challenging market landscape, with prices consistently on a downward trajectory.
Europe
In Q3 2024, the Iso Butyric Acid market in Europe saw a notable decline in prices, with Germany being particularly affected by this downward trend. Several significant factors contributed to the decrease in market prices during this quarter. A disconnect between supply and demand created a bearish sentiment, exacerbated by supply chain disruptions, including port strikes that led to increased stockpiles of Iso Butyric Acid. Germany experienced the most significant price changes during this period, reflecting the broader challenges faced by the market. A seasonal slowdown impacted key sectors, such as chemical solvents, animal feed, and food processing manufacturing, all of which are major consumers of Iso butyric acid. This reduced demand, combined with logistical disruptions and heightened inventory levels, resulted in a consistent decline in prices throughout the quarter. Despite a slight decline in the previous quarter, the overall trend remained negative, highlighting the difficult pricing environment for iso butyric acid. Manufacturers and suppliers are now navigating these challenges as they seek to stabilize their operations amid ongoing market volatility and shifting demand dynamics.
For the Quarter Ending June 2024
North America
During Q2 2024, the Iso Butyric Acid market in North America maintained a stable pricing environment, largely due to a balanced demand and supply dynamic. This stability was influenced by several significant factors throughout the quarter. One key aspect was the limited inquiries from the downstream animal feed industry, which, coupled with a stable supply of Propylene feedstock, played a crucial role in maintaining steady prices.
Despite occasional disruptions in manufacturing activities due to severe weather conditions, the overall supply chain demonstrated resilience, ensuring a consistent flow of Iso Butyric Acid. In the USA, which experienced the most notable price changes, market trends reflected stability, with Iso Butyric Acid prices exhibiting minimal fluctuations and no significant difference between the first and second half of the quarter.
This stability can be attributed to moderate demand from the animal feed sector, which was effectively balanced by robust demand from the food and flavouring industries. Additionally, seasonal factors, such as the peak summer season, did not markedly impact prices, indicating a balanced market environment. Overall, the Iso Butyric Acid market in North America during Q2 2024 was characterized by stable pricing, supported by a resilient supply chain and balanced demand across key industries.
APAC
The second quarter of 2024 has been marked by a rising price trend for Iso Butyric Acid in the APAC region, primarily influenced by significant cost pressures from feedstock materials and logistical challenges. The quarter saw increased prices due to the heightened cost of raw materials, particularly Propylene, whose price surged by 3%, exerting upward pressure on production costs. Additionally, the limited availability of propane loading from the Middle East Gulf, coupled with delays in deliveries from the US, further tightened supply chains, exacerbating the price hike. These factors, alongside increased transportation costs, have collectively driven the upward trend.
Focusing on China, which witnessed the most substantial price variations, the market experienced notable volatility. Seasonality played a role, with demand fluctuations corresponding to the Chinese domestic market's cyclical nature. The quarter's overall trend reflected a cautious yet steady price increase. Despite a 0% change compared to the same quarter last year, the price from the previous quarter in 2024 saw a slight decline of -1%. However, a comparison between the first and second halves of the quarter revealed a 1% increase, indicating a gradual recovery and stabilization in prices.
The latest quarter-ending price for Iso Butyric Acid stood at USD 1595/MT FOB Shanghai. This consistent rise in prices underscores a generally positive pricing environment, driven by robust market fundamentals and strategic supply management.
Europe
In Q2 2024, the Iso Butyric Acid market in Europe experienced a significant decline in prices, driven by several key factors. One of the primary influences was the resumption of production at OQ Chemicals' facilities, which alleviated the previous supply shortages. This increase in availability exerted downward pressure on Iso Butyric Acid prices. Additionally, the reopening of LyondellBasell’s steam cracker improved the supply of Propylene feedstock, further lowering production costs and contributing to the price decline. The manufacturing sector's persistent bearish sentiment also played a crucial role in the price reduction. Weak order books and a general lack of demand for Iso Butyric Acid dampened market activity, reinforcing the downward trend in prices. France, in particular, saw notable price volatility. This was primarily due to improved supply conditions and market participants' cautious sentiments, which anticipated further price decreases. Seasonal variations further influenced the market, with reduced activity in the chemical intermediate sector during certain periods contributing to the overall price decline. These combined factors—improved supply from key producers, lower production costs, weak demand in the manufacturing sector, and seasonal effects—created a challenging environment for the Iso Butyric Acid market in Europe, leading to a substantial decline in prices during the second quarter of 2024.
