Butyric Acid prices surged across North America and Europe in early March 2025, driven by rising production costs and limited supply from February. However, demand remained weak as the animal feed and food & flavoring sectors struggled to recover.

In the United States, Butyric Acid prices rose by 1.4% in the first half of March, largely due to a 5% increase in feedstock Propylene (Refinery Grade) prices. Producers passed down higher costs to downstream buyers, despite challenging export conditions to key markets like Canada and Mexico. Meanwhile, domestic demand showed signs of strain, with U.S. corn production for 2024/25 forecast to drop by 1.8 million tons to 1.492 billion tons, leading to lower animal feed output. Consumer sentiment continued to decline, with the consumer confidence index falling by seven points to 98.3 in February, while consumer spending dropped 0.2% in January, further pressuring demand. Data from the Association of American Railroads also pointed to sluggish industrial activity, with chemical railcar loadings falling by 3% to 33,079 for the week ending March 8, 2025. Despite the subdued demand conditions, US Butyric Acid producers  continued  to maintain strict pricing  and chose to pass on higher  production costs  to the downstream customers, unwilling to negotiate thereby  keeping market conditions largely bullish.

In France, Butyric Acid prices climbed 0.9% in early March, as suppliers passed rising feedstock costs to consumers. European Propylene prices jumped by 5.3%, further driving up production costs of Butyric Acid. However, lower cracker run rates, hovering at 65% since November 2024, kept Propylene supply tight, restricting Butyric Acid output. Export challenges persisted, with ongoing strikes at Le Havre port disrupting shipments of Butyric Acid thus leading to increments in lead times for deliveries. Labor unions ramped up industrial action over pension reforms, causing further logistical delays. Consumer confidence continued to weaken across major European economies, with key declines recorded in Germany (down 3.9 points), France (down 3.7 points), Belgium (down 3.3 points), Great Britain (down 2.8 points), and Poland (down 2.7 points). Adding to the subdued demand outlook, the European Union's February authorization of new feed additives excluding Butyric Acid, further limiting consumption in the animal feed sector.

Butyric Acid prices are expected to continue rising, as contract prices for feedstock Propylene increased in February. Additionally, lower refinery run rates across North America are likely to push Propylene costs higher, further driving price increases in the coming weeks.