For the Quarter Ending June 2025
North America
• The n-Butanol spot price in North America declined by 6.64% 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 n-Butanol change in July 2025 in the US?
• In July 2025, the Price Index of n-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 n-Butanol spot price in Europe declined by 9.3% 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 n-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 n-Butanol change in July 2025 across Europe?
• In July 2025, the Price Index of n-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 n-Butanol Price Index in the APAC region declined by 0.9% 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 n-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 n-Butanol change in July 2025 across APAC?
• In July 2025, the Price Index of n-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 US N-Butanol market experienced predominantly bullish conditions in Q1 2025, with prices initially declining by around 5.5% during January and February before rebounding by 7.9% in March. In January, ample supply persisted amidst stable feedstock costs and logistical issues in Houston, while weak demand from the paints and coatings sector and restricted exports to Mexico and China pressured prices. Winter Storm Enzo further disrupted production.
February saw support from rising feedstock propylene costs, though suppliers maintained ample inventories, rolling over prices amid sluggish exports due to the Lunar New Year and extended anti-dumping duties. However, modest demand recovery was noted in the construction-linked Butyl Acetate and Acrylate sectors.
In March, tightened inventories and curtailed production led to price rises, with n-Butanol supply remaining the most constrained among oxo-alcohols. Although transportation stabilized, export demand remained weak. Domestically, prices firmed as downstream sectors resumed purchasing, aided by reduced imports and growing preference for local suppliers amid political uncertainties, thus aiding in some recovery of prices during late March 2025.
Europe
The European n-Butanol market experienced a predominantly bullish trend in Q1 2025, with prices surging approximately 10% amid high production costs and constrained availability, despite weak demand. In January, production remained limited due to extended holidays and efforts to balance supply by curtailing run rates. Feedstock propylene prices continued to rise throughout the quarter, compounded by low arrivals from the Middle East, which in turn raised production costs. Logistical issues at Hamburg terminals, with yard utilization at 75–80%, hindered inventory movement. In February, oxo-alcohol production remained low at 60% capacity, and price hikes of EUR 80/MT by OQ Chemicals further supported market prices. Despite these pressures, demand from the paints and coatings sector and construction remained weak, leading to subdued market activity. In March, limited cracker run rates and restricted arbitrage further tightened availability. Container congestion in Hamburg reached 85% utilization, restricting spot trades. Although suppliers began restocking ahead of spring, construction activity declined due to high interest rates and weak new orders.
APAC
The APAC n-Butanol market declined by approximately 3.5% in Q1 2025, driven by high supply and moderate demand. In January, supply was constrained due to maintenance at Nan Ya Plastics and low PDH unit run rates, which raised production costs amid a 1.1–1.2% rise in Propylene prices. However, a 6% drop in intra-Asia freight charges helped cap prices. Demand remained weak in Japan, especially in the paints, coatings, and plasticizer sectors due to declining housing starts. In February, supply disruptions persisted, with n-Butanol more constrained than other oxo-alcohols. OQ Chemicals and Mitsubishi Chemicals announced price hikes due to tight availability and a 4% increase in feedstock costs. Imports were limited as major producers in Taiwan and South Korea faced production issues, though a 12% drop-in freight rates offered some relief. By March, Propylene prices fell by approximately 1% as PDH run rates improved, easing production costs. Ample supply and lower-priced Chinese exports, alongside weak construction demand in Japan, reinforced bearish price trends.
For the Quarter Ending December 2024
North America
The U.S. n-Butanol market saw a significant decline of approximately 23% during the fourth quarter of 2024, despite disruptions typically associated with the hurricane season. Weak construction spending across the U.S. was a key factor behind the bearish demand conditions, as the construction sector is a major consumer of n-Butanol. Export conditions remained unfavorable, further exacerbating market challenges.
The strike between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) caused the suspension of port operations, leading to a significant accumulation of inventories across the market. Mid-quarter, global oxo-alcohol capacity expanded by 1.3 million tons per year, as new facilities came online. This increase in global capacity heightened competition, particularly from the Asian market, further pressuring U.S. n-Butanol prices.
Toward the end of 2024, U.S. suppliers attempted to offload inventories in bulk due to destocking activities aimed at avoiding inventory devaluation and year-end tax repercussions. These combined factors intensified bearish market conditions, pushing prices even further downward.
APAC
During Q4 2024, the Asian n-Butanol market experienced fluctuations, with prices rising by 1.2% early in the quarter before dropping 2.8% by its end. In Japan, production costs increased in November as feedstock Propylene prices rose by 1.1%, driven by maintenance turnarounds and limited PDH operating rates in South Korea. Supply constraints worsened as Taiwan’s Formosa Plastics and South Korea’s Hanwha Solutions cut production, while rising shipping costs pushed import prices higher. The Intra-Asia Container Index surged 45% in November, from $573 to $829 per 40ft container, amid pre-Christmas demand. JNC Corporation raised n-Butanol prices by Yen 10,000/MT for October 2024 deliveries due to rising logistics and storage costs. However, sluggish demand from the paints and coatings sector, impacted by Japan’s weak construction activity, reversed the bullish trend. Additionally, over 1 million tonnes of oxo-alcohol capacity came online in China late in the quarter, driving prices downward. By year-end, the Japanese market faced a downturn due to high costs and subdued downstream demand.
Europe
During Q4 2024, prices of n-Butanol across the German market fell by approximately 16.5% 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 stayed 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 n-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.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American n-Butanol market faced a significant downturn, particularly in the USA, influenced by a confluence of challenging factors. Supply chain disruptions, especially related to refinery run rates and limited availability of propylene, severely constrained production capabilities. This situation was further exacerbated by weakened demand from downstream industries, notably paints and coatings, which struggled to recover amid seasonal fluctuations. Despite efforts from major producers like Eastman Chemicals to increase prices by USD 110/MT on August 1, 2024, the overall market sentiment remained negative. Strikes organized by the International Longshoremen's Association created additional logistical challenges, complicating an already strained supply chain.
Furthermore, the ongoing hurricane season posed serious operational challenges, impacting production in critical manufacturing areas across the USA. As a result, the pricing landscape for n-Butanol reflected this turmoil, with a notable 6% decline from the previous quarter and a staggering 28% drop compared to the same period last year. The latter half of the quarter continued this downward trajectory, recording another 6% decrease, leading to a quarter-ending price of USD 1,385/MT of n-Butanol FOB New York.
This consistent decline highlights the precarious conditions facing the market throughout Q3 2024, emphasizing the ongoing struggles with supply, demand, and external disruptions.
APAC
In the third quarter of 2024, the Asian n-Butanol market experienced a pronounced bearish trend, with prices plummeting by over 14% 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 n-Butanol. 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 n-Butanol 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 n-Butanol market in the region.
Europe
In Q3 2024, the European n-Butanol market experienced a significant decline in prices, particularly in Germany, where fluctuations were most pronounced. Several factors contributed to this downturn. An oversupply of propylene, a critical feedstock for n-Butanol production, led to reduced production costs, further exerting downward pressure on prices. Additionally, subdued demand from the paints and coatings sector, compounded by a slowdown in the construction industry, added to the challenges facing the market. Early in the quarter, the return of OQ Chemicals to production suggested a potential normalization of conditions. However, disruptions arose in August as many propylene plants temporarily shut down for maintenance during the summer holidays. Notably, Shell Chemicals declared a force majeure at its Moerdijk facility, resulting in decreased n-Butanol output across Europe. To mitigate the ongoing bearish market conditions, OQ Chemicals implemented a price increase of $110/MT in the European market. By September, most propylene plants resumed operations, and the arrival of propylene cargoes from the Middle East and Asia led to a supply glut that intensified the already negative sentiment. Germany saw a considerable 21% decrease in n-Butanol prices compared to the same period last year, with a quarter-on-quarter decline of 21% as well. The first half of the quarter recorded a 1% drop, highlighting the persistent bearish market conditions. As Q3 closed, n-Butanol prices in Germany settled at USD 1,560/MT FD Hamburg, reflecting the overall negative sentiment in the region and the ongoing challenges within the market.
FAQ’s
1. What factors influence the price of n-Butanol in the market?
n-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 n-Butanol pricing?
As a key feedstock, Propylene price trends directly impact the production cost of n-Butanol. A decline in Propylene prices typically lowers manufacturing costs, which can lead to downward pressure on the n-Butanol Price Index, assuming stable demand.
3. Why do import volumes from countries like China and Taiwan impact n-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 n-Butanol Price Index, while oversupply from these regions can suppress prices.
4. What role does the construction sector play in determining n-Butanol prices?
The construction industry is a major consumer of paints, coatings, and adhesives, which rely on n-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 n-Butanol pricing?
Port disruptions, freight cost changes, and currency movements (like a stronger yen or yuan) can affect landed costs of imported n-Butanol. These factors often shape supplier pricing strategies and, in turn, impact the overall Price Index in regional markets.
