For the Quarter Ending March 2025
North America
Throughout Q1 2025, the North American n-butylene market experienced varied sentiments, shaped by fluctuating production costs, evolving downstream demand, and broader economic forces. January opened with a bullish outlook as rising crude oil prices and a surge in the demand from the fuel additives segment boosted prices, further intensified by supply chain disruptions caused by a polar vortex. This combination of elevated input costs, logistical constraints, and a rise in consumption fostered a positive market tone early in the quarter.
In February, the bullish momentum waned as falling energy prices brought down production costs. While downstream sectors such as butyl rubber and lubricants experienced some expansion, moderate demand and healthy inventory levels prevented significant price increases. Simultaneously, emerging uncertainty around new trade tariffs added pressure to market confidence.
By March, a bearish tone prevailed, driven by reduced crude oil prices and limited downstream activity. Steady supply conditions and adequate inventories kept buying limited. Although the supply chain remained intact, restrained procurement and persistent macroeconomic challenges continued to weigh on sentiment, leading to further price declines. In conclusion, the quarter began with strong fundamentals but transitioned into a cautious phase, shaped by declining cost drivers and external economic uncertainty.
APAC
The N-butylene market in the APAC region in Q1 2025 exhibited mixed sentiments, shaped by varying influences across each month. January began on a bullish note, driven by heightened procurement activity ahead of the Lunar New Year holidays in China, which prompted Indian market participants to secure sufficient inventories and avoid anticipated supply disruptions. Stronger performance in the fuel additives sector and steady consumption from the butyl rubber industry further supported this optimistic sentiment. However, February marked a turning point as easing import costs from China reduced procurement expenses, leading to a shift in pricing strategies. Despite steady demand from downstream sectors, the combination of lower costs and ample stock levels dampened price growth. This moderation in market enthusiasm was further reinforced in March when a continued decline in input costs and weak downstream demand exerted pressure on market participants. Stable operations and abundant inventories removed urgency in buying behavior, while limited activity from end-use sectors kept market engagement low. Overall, the quarter reflected a transition from strong procurement-led optimism to cost-driven caution, highlighting how shifting supply-demand dynamics, production costs, and external seasonal factors collectively influenced market sentiment throughout the quarter.
Europe
The European N-butylene market experienced a notable evolution in sentiment throughout Q1 2025, influenced by changing supply conditions, fluctuating costs, and varying demand levels. January opened with a bullish trend, propelled by elevated production expenses due to crude oil price increases and intensified by supply disruptions, notably congestion at the Hamburg port. Although downstream demand was only moderate, the combination of restricted logistics and low stock levels drove urgency in the market, supporting price gains. This optimism, however, diminished in February as input costs fell and inventory availability improved. Despite a slight uptick in downstream consumption, particularly in the butyl rubber industry, the balance shifted toward oversupply, easing pressure on buyers and prompting a price dip. By March, the sentiment turned bearish as further cost reductions and sustained inventories coincided with waning downstream activity. Ongoing logistical hurdles, including continued congestion and persistently low Rhine River water levels, failed to lift the subdued market. Ample supply and weak procurement kept activity low. Altogether, the quarter reflected a clear shift from supply-tight bullishness to a more cautious tone shaped by easing costs and declining demand, underscoring the market’s sensitivity to both logistical and economic fluctuations.
For the Quarter Ending December 2024
North America
In Q4 2024, the North American n-butylene market experienced fluctuating trends shaped by production costs, shifting demand, and broader economic influences. In the U.S., bearish conditions prevailed in October and November, primarily due to weak demand from downstream sectors such as butyl rubber, fuel additives, and lubricants, alongside ample inventory levels.
Market uncertainty deepened with the presidential election, as reduced new orders and production rates reflected weaker business confidence and economic caution. The election of Donald Trump and subsequent policy changes, including deregulation and a focus on domestic production, further contributed to the downward pressure on the market.
However, in December, the market witnessed a turnaround with growing demand, especially from the fuel additives sector and international buyers. Increased orders fostered a bullish outlook, prompting market participants to adjust strategies and raise prices. Despite varied performance across downstream sectors, rising domestic and global demand boosted market confidence, leading to higher production and trading activity. This period underscores the complex interaction between economic policy, sector performance, and market trends, as initial caution gave way to optimism by year-end due to strengthened demand and refined supply strategies.
APAC
In Q4 2024, the n-butylene market in the APAC region displayed fluctuating trends driven by shifting demand, inventory levels, and production factors. During October and November, bearish market conditions emerged as demand from downstream sectors such as butyl rubber and fuel additives remained weak, and inventory levels were sufficient. The easing of port congestion at Qingdao and Ningbo further contributed to reduced new orders and destocking activities in the n-butylene market. In response, producers lowered production rates to avoid oversupply, reinforcing a cautious market atmosphere. By December, however, the market sentiment shifted to a more bullish outlook, fueled by increased demand for n-butylene from both domestic and international downstream sectors. The fuel additives segment showed notable improvement, leading to a rise in production rates and trading activity to address supply shortages. The upstream crude oil prices and ongoing logistical challenges further supported this positive trend, encouraging market participants to raise prices. These developments highlighted the intricate relationship between production costs, sector performance, and demand fluctuations in shaping the outlook for China’s n-butylene market.
Europe
In Q4 2024, the n-butylene market in Europe experienced fluctuating trends influenced by production factors, downstream sector performance, and supply chain disruptions. October and November witnessed bearish market conditions, driven by weak demand from sectors like fuel additives and lubricants, coupled with adequate inventory levels. While the butyl rubber segment benefited from improved performance in the automotive sector, this uptick was insufficient to counterbalance declining demand in other applications. Destocking and cautious market behavior further pressured the market, prompting producers to scale back output to avoid oversupply. Logistical challenges, including delays at Hamburg’s Container Terminal Altenwerder and rail freight disruptions in northern Germany, added complexity but had minimal impact on the market due to ample inventory levels. However, in December, market sentiment turned bullish, fueled by rising demand from international markets and continued supply chain disruptions, such as labor shortages and strikes at Hamburg Port. Growing demand and insufficient inventories drove higher production and trading activity, creating a more optimistic outlook for Germany’s n-butylene market. This shift highlighted the dynamic interplay of demand recovery, supply chain constraints, and market adjustments.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American n-butylene market witnessed a noticeable decrease in prices, with the USA experiencing the steepest declines. This challenging quarter for n-butylene was marked by an oversupply and reduced demand from crucial downstream sectors, such as Butyl Rubber and Fuel Additives, creating an unfavorable supply-demand balance. The high inventory levels and muted sectoral demand were primary contributors to the downward pricing pressure, highlighting the market's struggle to absorb excess supply.
The USA's n-butylene market also echoed a similar negative trend, maintaining bearish sentiments throughout Q3. Seasonal shifts and irregular demand patterns further influenced price volatility, and the anticipated demand uptick failed to materialize, limiting price stabilization. Additionally, plant shutdowns disrupted the supply chain, adding pressure to an already fragile market and reducing chances for price recovery.
Production costs and feedstock price fluctuations closely correlated with the overall market price trajectory, underscoring the role of cost pressures in shaping the quarter's pricing. This combination of supply chain challenges, reduced demand, and production volatility contributed to a sustained decline in n-butylene prices across North America.
APAC
In Q3 2024, the n-butylene market in the APAC region witnessed a decline in prices, with India experiencing the most significant changes. Various factors contributed to the downward trend, including reduced demand from key sectors like Automotive and Fuel Additives. Weak performance in these industries, exacerbated by adverse weather conditions and logistical disruptions from port strikes, led to a surplus of n-butylene inventories, driving prices lower. The market also faced challenges from high supply levels, as production costs decreased due to lower Naphtha prices. Additionally, plant shutdowns further impacted the market dynamics, adding to the negative sentiment. In India specifically, the pricing environment reflected a bearish trend, with a notable -1% decrease from the previous quarter. Seasonal factors and inventory accumulation influenced the market, with a significant -3% price difference between the first and second half of the quarter. The quarter-ending price stood at USD 99500/MT of n-Butylene Ex-Mumbai, highlighting the overall negative pricing trend in the region.
Europe
In Q3 2024, the European n-butylene market witnessed a price decline, with Germany experiencing the most significant downward trend. Several key factors contributed to the market’s reduced prices this quarter. A primary driver was the imbalance between elevated inventory levels and weak demand from downstream sectors, such as Butyl Rubber and Fuel Additives. This disconnect fostered bearish market sentiment, further intensified by supply chain disruptions, including port strikes that led to stockpile increases. Additionally, falling crude oil prices, the main feedstock for n-butylene production, lowered production costs, adding further downward pressure on prices. Germany witnessed the steepest price fluctuations throughout the quarter, with a seasonal slowdown affecting industries like automotive and tire manufacturing, major consumers of n-butylene. The interplay of reduced demand, logistical disruptions, and higher inventory levels resulted in a steady price decrease throughout the quarter. Despite minor declines in the previous quarter, the overall trend remained negative, underscoring a challenging pricing landscape for n-butylene.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American n-butylene market experienced a pronounced upward pricing trend, primarily driven by a surge in demand from key downstream sectors, notably the automotive industry. The automotive sector's increased demand was reflected in the robust sales of new vehicles. This elevated demand put considerable pressure on n-butylene prices, as manufacturers struggled to keep pace with the growing requirements. Compounding this pressure were higher prices for upstream feedstocks like crude oil, which increased production costs and further drove up n-butylene prices. The interplay of these factors created a tightening market scenario, reinforcing the bullish trend in pricing.
Additionally, logistical challenges, including temporary plant shutdowns, exacerbated the supply constraints and contributed to the market's upward price movement. Seasonal factors also played a significant role, increased trading activities leading up to major holidays intensified demand, further pushing prices higher.
The combination of robust demand from the automotive sector, increased production costs due to higher crude oil prices, and seasonal trading surges resulted in a notable price increase for n-butylene compared to the previous year. This upward trend underscored the strengthening demand and the market's overall bullish sentiment during the quarter.
APAC
In Q2 2024, the n-butylene market in the APAC region experienced a mixed trend in prices. During the first half of 2024, the n-butylene market showcased an incline in their trend. This surge in prices was primarily attributed to the limited availability of supplies coupled with sustained demand in the market. Additionally, the rise in feedstock crude oil prices by almost 6% and further upstream Ethylene costs within the producing country contributed to the cost support for the product. These industries, driven by various factors such as infrastructure development and technological advancements, have contributed to the increased demand for N-butylene. The demand for n-butylene experienced a notable surge, driven in part by increased demand from downstream markets. The rise in demand for Acrylonitrile Butadiene Styrene (ABS) and Styrene Butadiene Rubber (SBR) contributed to an increase in N-butylene prices. Additionally, the increase in Methyl Tertiary Butyl Ether (MTBE) production can be attributed to the rise in crude oil and gasoline prices, as MTBE is a gasoline additive derived from N-Butylene. This further underscores the interconnectedness of N-butylene with the broader energy and petrochemical markets, highlighting the complex dynamics that influence its supply and demand. However, in the H2 of 2024, the n-butylene market in India experienced a slight decline largely influenced by contrasting performances in its downstream sectors. The Fuel Additive segment demonstrated resilience with robust demand driven by Methyl Tertiary Ether (MTBE), which typically supports n-butylene market strength. However, this positive momentum was counterbalanced by the downturn in the Butyl Rubber segment, predominantly used in automotive applications. The Indian automotive sector encountered significant challenges during the month, including severe heat waves, delayed monsoons, subdued market sentiment, and deferred purchases amid low consumer demand. These factors contributed to fewer customer walk-ins and overall sluggish market activity. Despite the buoyancy in the Fuel Additive sector, the weakened performance of the automotive industry resulted in a marginal decline in the overall n-butylene market trend for the month.
Europe
In Q2 2024, the European n-butylene market experienced significant upward price pressure, driven predominantly by robust demand from downstream sectors, with the automotive industry being a key contributor. The automotive sector's intensified need for n-butylene created a strong bullish trend in the market. This demand surge was further amplified by ongoing disruptions in the global supply chain, notably the Red Sea Crisis. The geopolitical tensions and logistical hurdles caused by this crisis led to increased import costs and substantial delays, severely impacting the n-butylene supply across Europe. These disruptions forced market participants to contend with higher costs and supply constraints, which in turn drove up prices. Compounding the situation were local disruptions within Europe, including protests that led to transportation blockages and adverse weather conditions that interrupted regional supply chains. These factors, coupled with seasonal elements such as holidays and festivals in major exporting regions, exacerbated the supply challenges. The increased import activities required to address the rising demand were hindered by these logistical and supply chain issues, leading to further volatility in prices. Overall, the European n-butylene market saw a pronounced upward trend in prices throughout the quarter, reflecting the complex interplay of heightened demand, supply disruptions, and increased production costs.
