Butyl Glycol Market Outlook in November 2024

Butyl Glycol prices continued to decline in the USA market in the month of October. The market outlook continued to be bearish since the past few months reflecting the declined market conditions for Butyl Glycol.

According to the analysts at ChemAnalyst, the prices declined by 2.5% as compared to the previous month and stabilized at USD 1535/MT FOB Hamburg Germany in the month of October. The prices were influenced by various factors including raw material cost, economic conditions, and many others. The prices were primarily driven by the demand dynamics in the market. The demand for Butyl Glycol is majorly driven from paints and coatings industry. The European paints and coatings market remained bearish. In the German market, the economic conditions failed to recover which impacted the overall demand dynamics in the market. The market remained sluggish and dull. As the demand is expected to remain plummeted in the month of November, the prices are anticipated to decrease further. The market is expected to remain sluggish as the economic conditions of the region is not expected to improve in the month of November. The demand for Butyl Glycol remained low from the major downstream sectors which is not expected to improve putting downward pressure on the prices.

On the supply side in the feedstock market, Ethylene oxide prices showed a downward trend reflecting the bearish market sentiment for Ethylene oxide and Butyl Glycol in the market. The feedstock market is also expected to decline as the prices of Ethylene oxide continued to decline in the previous month. The production cost remained steady in the market leading to the further declined prices of Butyl Glycol in the market. The mood in German industry remained glum in October. The ECB cut interest rates again in October and is planning a further reduction in December. The Fed opted for a reduction of 50 basis points in September. HCOB Economics expects one further interest rate cut in the eurozone and two in the US in 2024. These measures could ease financing pressure and support demand in the export-oriented German industrial sector. However, if structural problems persist in Germany, the outlook remains bleak which could have impact on the market in the month of November and the result would be further decline in Butyl Glycol prices.

Looking further, the prices of Butyl Glycol would continue to show bearish trend until demand fundamentals improve in the market. The economic condition of the country is projected to remain stagnant or weak leading to low consumption of chemicals like Butyl Glycol which could put pressure on the prices in downward direction.