For the Quarter Ending March 2025
North America
In Q1 2025, the North American N-Propanol market exhibited largely stable pricing, reflecting steady but restrained demand from the downstream paints and coatings sector. Despite early optimism, the construction and renovation segments, key consumers of coatings faced a slow start to the year due to persistent winter weather across parts of the U.S. and Canada, which delayed outdoor and infrastructure-related activity.
As a result, offtakes of N-Propanol, a primary solvent in coatings formulations, remained moderate. Demand for industrial coatings saw slight improvement in March with seasonal activity beginning to pick up, particularly in the southern U.S., but decorative coatings demand stayed subdued amid cautious consumer spending.
On the supply side, domestic production remained balanced with consumption. Producers maintained stable operating rates, and no major supply disruptions were reported. Inventories were adequately managed, with most suppliers avoiding overstocking. Although energy and logistics costs remained elevated, they had limited impact on N-Propanol pricing. The market heads into Q2 with expectations of gradual demand recovery tied to construction season momentum.
EUROPE
In Q1 2025, the N-Propanol market in Europe experienced stable to slightly declining price trends, reflecting a cautious demand environment in the downstream paints and coatings sector. While the European construction industry showed early but uneven signs of recovery—most notably in the UK, Nordics, and select regions of France—growth in decorative and industrial coatings demand remained moderate, limiting any significant uptick in N-Propanol consumption.
Supply across Europe remained steady, though some producers faced logistical challenges and elevated energy costs, particularly in January and February. These factors contributed to restrained inventory movement, though there was no widespread disruption in availability.
By March, construction and refurbishment activities began to recover modestly as temperatures rose. However, downstream purchasing behaviour remained conservative, with buyers avoiding bulk procurement due to uncertain near-term market direction. Despite stable demand for eco-friendly and fast-drying coatings, price pressure persisted due to balanced supply and soft market sentiment. The outlook heading into Q2 remains neutral, with hopes pinned on broader construction sector momentum.
APAC
In the first quarter of 2025, the APAC n-propanol market witnessed a 2.26% decline in prices, largely attributed to softened downstream demand and buyer caution across the region. In key markets like South Korea, buyers in the chemical and paints sectors adopted conservative procurement strategies, favouring existing inventories over new purchases. This cautious stance created a surplus in supply and limited the pricing power of producers.
Manufacturers maintained steady production amid stable raw material availability and uninterrupted logistics but declining new order intakes forced firms to rely on finished stockpiles, contributing to oversupply. Additionally, lower shipping costs due to a 6% drop in Drewry’s Intra-Asia Container Index improved import affordability, adding further pressure on regional prices.
The lack of strong restocking activity and subdued client sentiment reflected broader economic caution, leading to reduced output and employment levels across the manufacturing sector. These dynamics collectively contributed to the downward pressure on Formic Acid prices across the APAC region during the first quarter.
For the Quarter Ending December 2024
North America
In the fourth quarter of 2024, N-Propanol prices in North America moderated, reflecting a balance between stable supply and more cautious demand from downstream industries. As the year came to a close, many sectors that rely on N-Propanol, such as pharmaceuticals, coatings, and personal care products, adopted a more conservative approach to inventory management in anticipation of the holiday season and New Year. While there was some seasonal demand in preparation for year-end sales, overall activity in these industries slowed, which contributed to a stabilization in prices.
New Year sales did not have a substantial impact on N-Propanol prices in the final quarter. Instead, businesses focused more on adjusting their stock levels rather than making significant purchases. This cautious approach to buying, combined with limited production increases, led to more moderate pricing throughout the period.
On the supply side, production levels remained stable, with both domestic manufacturers and international suppliers ensuring steady availability. The stable supply, along with reduced purchasing activity from downstream industries, helped keep prices relatively flat. As a result, N-Propanol prices in North America experienced a period of moderation in the fourth quarter of 2024, driven by steady supply and tempered demand from key sectors.
APAC
In the fourth quarter of 2024, N-Propanol prices in Asia showed a mixed trend, with notable regional variations. In China, N-Propanol prices increased in November, driven by a combination of rising demand from downstream industries and supply chain adjustments. The demand spike was particularly noticeable in the coatings, pharmaceuticals, and personal care sectors, which tend to experience increased activity before the New Year. The preparation for year-end sales and holiday demand led to more significant purchasing, contributing to the price increase in November.
On the other hand, South Korea saw a slight decrease in N-Propanol prices throughout the quarter. This trend was largely due to more subdued demand from key downstream industries, as many businesses focused on inventory management and reducing stockpiles in anticipation of slower activity during the New Year period. Additionally, some production slowdowns in sectors like automotive and consumer goods, which are significant consumers of N-Propanol, kept demand relatively stable but not high enough to support price hikes.
The supply side remained balanced, with steady production from local suppliers and continued imports meeting regional demand. Overall, while China saw an uptick in prices due to strong downstream activity in November, South Korea’s prices trended downward due to weaker demand, leading to a mixed pricing trend for N-Propanol in Asia during the fourth quarter of 2024.
Europe
In the fourth quarter of 2024, N-Propanol prices in Europe experienced a slight decrease, influenced by a mix of demand trends and supply conditions. As the year came to a close, many downstream industries, such as coatings, pharmaceuticals, and cosmetics, began to scale back production in preparation for the holiday season and New Year. This seasonal slowdown typically results in lower demand for raw materials like N-Propanol, contributing to a softening of prices.
New Year sales did not lead to significant changes in the N-Propanol market. While there was some increase in consumer demand for products like personal care items and cleaning agents, businesses in the downstream industries were more focused on managing inventory rather than making large purchases of raw materials. This cautious purchasing behavior kept demand for N-Propanol relatively stable, but not enough to push prices higher.
On the supply side, production levels in Europe remained steady, and imports from key global suppliers were consistent, ensuring a balanced market. The availability of N-Propanol was adequate to meet the reduced demand, preventing any significant price fluctuations. As a result, N-Propanol prices in Europe saw a slight decrease in the fourth quarter of 2024, driven by tempered demand from downstream industries and stable supply conditions.
For the Quarter Ending September 2024
North America
Throughout Q3 2024, n-Propanol prices in North America remained stable, reflecting a balanced market with moderate supply and subdued demand. This stability was influenced by several factors, including weak buying interest, lackluster demand from downstream industries, and slow trading activity. Existing stock levels were sufficient to meet domestic needs, leading businesses to adopt a cautious approach to inventory replenishment. Despite some improvements in the construction sector and other solvent-related industries, overall demand for n-Propanol remained muted.
These elements combined to create a consistent pricing environment, with prices holding steady despite the market’s challenges. As a result, companies were careful in their purchasing decisions, mirroring the cautious sentiment that dominated the region.
While certain sectors displayed signs of recovery, the broader outlook for n-Propanol demand continued to reflect a wait-and-see attitude among manufacturers and suppliers. This cautious approach contributed to the overall stability in pricing, as enterprises opted to proceed with restraint rather than engage in aggressive purchasing amid uncertainty in the market.
APAC
In Q3 2024, the APAC region witnessed a notable increase in n-Propanol prices, driven by a confluence of factors shaping market dynamics. Elevated demand from downstream industries, particularly in solvents and cosmetics, played a pivotal role in driving up prices. Additionally, supply constraints and logistical challenges, such as port congestion, contributed to the price surge. China, experiencing the most significant price changes, saw a steady uptrend in n-Propanol prices. At the end of August, the trading activity improved, and positive buying sentiments also contributed to upward trend. The overall trend in the region indicated a positive sentiment, with a 2% increase from the same quarter last year. Moreover, prices surged by 4% from the previous quarter in 2024, reflecting the growing market demand. A price comparison between the first and second half of the quarter revealed a 3% increase, showcasing the consistent upward trajectory. The quarter-ending price stood at USD 1140/MT of n-Propanol FOB-Qingdao in China, underscoring the prevailing bullish pricing environment in the APAC region.
Europe
In Q3 2024, n-Propanol prices in the European region experienced a notable decline due to several critical factors. The prevailing trend of decreasing prices was primarily influenced by rising global logistics costs. Disruptions in the Red Sea region significantly contributed to these increased expenses, as ongoing conflicts resulted in severe port congestion, equipment shortages, and higher operational costs. These logistical challenges created a ripple effect on supply chains, leading to delays and interruptions that amplified market volatility. With shipping routes becoming less reliable, the availability of n-Propanol was further constrained, complicating the pricing landscape.
Additionally, concerns over supply stability impacted market sentiment, contributing to price fluctuations. Manufacturers faced the challenge of navigating these complexities while managing their production schedules, which fostered an overall bearish outlook in the market. This combination of geopolitical factors and logistical disruptions ultimately led to a decrease in n-Propanol prices in Europe during this period, highlighting the intricate interdependencies within global supply chains.
For the Quarter Ending June 2024
North America
The second quarter of 2024 witnessed a notable rise in n-Propanol prices in the North American market. This increase was driven by supply constraints, caused by moderate to low manufacturing rates and intermittent labor shortages, which intensified the gap between demand and supply. Furthermore, strong performance in key downstream sectors, particularly paints and coatings, maintained the demand pressure on n-Propanol prices.
In the construction sector, demand for n-Propanol was bolstered by the robust activity that began with the Spring buying season. Construction projects nationwide saw a significant uptick, including rural highway repaving, freeway-style interchange construction, and safety enhancements aimed at addressing infrastructure needs and accommodating growing transportation demands. This surge in construction activity reflected efforts to meet increasing demands, maintain existing infrastructure, and expand transportation networks to support various modes of transportation.
Additionally, the hospitality sector showed positive signs, with the volume of hotel rooms under construction growing year-over-year for the first time since June 2023, indicating a gradual recovery. These factors collectively drove up the demand for n-Propanol, an essential component in construction paints and coatings.
APAC
The second quarter of 2024 has been marked by a noticeable upward trajectory in n-Propanol prices across the Asia-Pacific (APAC) region, driven primarily by a confluence of strategic market factors. The global rise in crude oil prices, coupled with increased upstream costs for key feedstock components like Ethylene and Propylene, has significantly influenced the market. Supply chain disruptions, particularly from Middle Eastern exporters, have exacerbated supply limitations, further escalating prices. Additionally, heightened freight charges and robust demand from the household, agrochemical, and personal care sectors have compounded the bullish trend. Inventory levels remained low against a backdrop of steady consumer demand, pushing suppliers to raise their quotations to match market dynamics.
In South Korea, the country experienced the most pronounced price changes in the region, showcasing a 20% increase compared to the same quarter last year, and an 11% rise from the previous quarter of 2024. Seasonal factors, such as increased cleaning agent consumption during hot months, combined with consistent industrial demand, have played pivotal roles. The first half of the quarter saw a 6% price hike compared to the latter half, underscoring the persistent pressure on supply in the face of unwavering demand. As a result, the quarter-ending price reached USD 1070/MT FOB-Busan, reflecting a consistently positive pricing environment. The overall sentiment remains bullish, driven by a robust interplay of supply constraints and demand surges, indicating a favorable pricing scenario for stakeholders.
Europe
In the second quarter of 2024, the n-Propanol market in Europe encountered a challenging environment, marked by a consistent decline in prices. Several key factors contributed to this downward trend, most notably the subdued demand from major end-user sectors such as construction and automotive. The construction industry faced a downturn due to economic and geopolitical uncertainties, high financing costs, and unfavorable weather conditions, leading to reduced demand for n-Propanol, which is essential in construction-related paints and coatings. Consequently, the decreased activity in the construction sector significantly impacted n-Propanol consumption. Similarly, the automotive sector experienced a decline, particularly in the sales of electric vehicles (EVs) and passenger cars. This slump was partly due to the withdrawal of government incentives for battery-powered electric vehicles, resulting in a noticeable decrease in new registrations. The reduction in demand for n-Propanol, crucial for the production of automotive coatings and related products, further compounded the challenges faced by the n-Propanol market.
