Quarterly Update on Global n-Butanol Market
For the Quarter Ending September 2020
Asia’s n-Butanol market witnessed increasing demand from the downstream sectors during Q3 with import discussions gradually picking up particularly in northeast Asia. Growing economies such as China and India are adding up new capacities due to swelling n-Butanol demand for end-use applications such as manufacturing of butyl acetate, butyl acrylate, glycol ether, and direct solvents. However, the supply for n-Butanol remained tight during Q3 due to plant turnrounds observed in far east Asia. Producers in countries like China and Taiwan were heard operating at lower rates with minimum workforce which limited feedstock availability and hence irregular supply was witnessed in these regions. However, demand remained stable in China unlike others Asian counties in 2020 with large capacity additions and reduced export volumes.
The n-Butanol supply remained steady during the Q3 while the demand showed a marked uptrend as the offtakes from the downstream coatings and plasticizers gained momentum with trade volumes showing considerable month-on-month increase. While coronavirus restrictions eased early in the quarter, rising cases kept some limitations in place in the anticipated growth. Unplanned production issues prevailing on the feedstock front kept some run rates curtailed, creating uneven market recovery despite sturdy demand growth.
By the third quarter, n-Butanol demand regained the lost uptrend with consumers starting residential construction and resuming delayed downstream projects. On an average, volumes produced stayed below year-ago levels but improved on QoQ basis as coronavirus restrictions eased early in the period. Increased raw material prices and constrained availability due the product outages at several oxo-alcohol production facilities in early-August which were resolved by the first half of September kept the prices afloat. The US’ n-Butanol pricing graph showed an upward trend in October with prices assessed around USD 890 per tonne in September with producers targeting better margins in Q4.
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ChemAnalyst gathers information through primary research surveys conducted with various n-Butanol manufacturers, spread across the domestic and international markets, suppliers and dealers/distributors to gain insights into value-chains and demand-supply scenario to assess the market situation. Thorough study of the company’s annual reports and secondary sources such as exhaustive search on credible paid databases, including our internal database is done to verify the information. All the collected information is analyzed, evaluated and presented in chronological order to depict a meaningful and clear picture of the concerned market.
Our dedicated team of industry experts comprehensively monitors and analyzes various aspects of the Global n-Butanol market. The team analyzes various industrial segments, strategic viewpoints and provides an analysis of the industry’s performance in the long run. This would enable our clients in efficiently plan their future investments, mitigate risk, understand the cost dynamics and strike out a balance amidst market volatility.
Critical examination of the impact of COVID-19 pandemic on the global supply chains and shift in demand patterns with change in buying behavior of consumers across the globe.
Several ongoing development projects across industries are tracked, followed by the details of major projects in the development stage, which can positively or negatively influence Global n-Butanol market.
Pricing is captured through exhaustive primary interviews with domestic and international manufacturers, traders and importers and customers on weekly, monthly, and yearly basis.
Finally, region-specific markets for n-Butanol are analyzed and region-wise demand pattern is tracked.
Butanol or n-Butanol (NBA) is a clear, colorless, and flammable liquid with banana-like odor. It is a four-carbon alcohol linear structure with chemical formula C₄H₁₀O. Conventionally, n-Butanol, a biomass-based renewable fuel is produced by alcoholic fermentation of the biomass feedstocks such as corn grains and others biomass globally. n-Butanol is a highly consolidated market with leading five players constituting more than 50% market share as of 2019. Some of them include BASF SE, Dow Inc., Sasol Limited, and others. NBA is widely used as a feedstock for the manufacturing of butyl acrylates for the coating industry which holds about 45% of total n-Butanol demand. Other applications include its use as a solvent in paints due to its moderate solubility and compatibility with many resin formulations, as plasticizer during plastic material processing, coatings, in textiles as a swelling agent from coated fabric and as an additive in gasoline. n-Butanol is preferred over other alternatives such as ethanol to be use as a fuel for internal combustion engines owing to its higher energy density and lower vapor pressure than ethanol, which makes it more attractive as fuel or blending agent.