Butyraldehyde prices remain stagnant in the Asian market during early February 2025, as stable feedstock propylene prices provided limited cost support. The Lunar New Year holiday in key APAC economies further slowed market activity, leading to subdued demand from downstream sectors such as coatings, plasticizers, and synthetic resins.

In China, butyraldehyde market activity was subdued, with many downstream factories shutting down or reducing production ahead of the Lunar New Year. The slowdown in the end-use construction sector, a key consumer of butyraldehyde-based plasticizers and resins, further dampened demand. Weakened procurement sentiment, combined with the cautious trading environment, kept price movements minimal.

In India, butyraldehyde demand showed early signs of improvement as industrial activity gradually rebounded after months of sluggish performance. The recovery in downstream coatings, adhesives, and plasticizer markets provided some support to market sentiment. The housing sector, which had experienced a 26% year-on-year decline in Q4 2024 due to high property prices and state elections, began to stabilize, with Delhi-NCR recording a 50% YoY sales increase. Additionally, India's auto retail sales grew by 6.6% year-on-year in January 2025, driving demand for butyraldehyde-based coatings, adhesives, and resins used in automotive applications. However, while these factors signaled a gradual recovery, persistent oversupply and low import prices in the market continued to limit any significant price rebound.

In Germany, butyraldehyde prices saw a slight increase in early February 2025, driven by rising feedstock and energy costs, despite persistently weak demand from downstream industries. The higher cost of raw materials, coupled with elevated production expenses, led OQ Chemicals to announce a price increase for butyraldehyde and other related products in Europe, effective February 1, 2025. However, demand remained muted, particularly in the coatings, adhesives, and plasticizer sectors, as subdued industrial and construction activity limited procurement. The European chemical industry continued to grapple with high energy costs and regulatory pressures, restricting market growth and keeping overall demand sluggish.

Meanwhile, Q4 2024 earnings reports from major chemical producers underscored persistent challenges in the European market. LyondellBasell reported a $603 million loss, attributing it to high natural gas and NGL costs, weak margins, and sluggish demand across Europe and Asia. Similarly, Dow’s Q4 2024 report highlighted weaker Construction Chemicals sales in Asia Pacific and EMEAI, reflecting seasonally lower demand in building and construction applications.

Butyraldehyde prices may rise post-Lunar New Year as restocking resumes and downstream demand improves, particularly in coatings, adhesives, and plasticizers. In Europe, rising raw material and energy costs, along with OQ Chemicals' recent price hike, could further support an upward trend for butyraldehyde, though demand recovery remains uncertain.