The global butanediol (BDO) market maintained stability across key regions, including the United States, Germany, and China, during the first week of February 2025. Despite ongoing macroeconomic uncertainties, balanced supply and demand dynamics ensured steady market conditions. Downstream industries continued to consume BDO at consistent rates, while raw material costs remained largely stable. No major disruptions were observed in supply chains, and production activities across major facilities remained normal. Market participants kept a close watch on evolving geopolitical developments, trade policies, and post-holiday demand recovery in China.

In the United States, BDO demand remained steady across core sectors such as polybutylene terephthalate (PBT), tetrahydrofuran (THF), and polytetramethylene ether glycol (PTMEG). Lower inflation and controlled interest rates created a favorable environment for industrial activity, supporting stable BDO consumption. However, uncertainties surrounding trade policies, including potential tariffs and evolving electric vehicle (EV) regulations, raised concerns about long-term demand growth. Despite this, domestic production levels remained consistent, ensuring ample supply to meet current market requirements.

In Germany, the BDO market showed no significant shifts, with supply and demand largely balanced. European market participants closely monitored China’s post-Lunar New Year market response to assess potential ripple effects. Industrial demand remained stable, and raw material costs did not introduce any major pricing pressures. While broader economic concerns persisted in the region, smooth operational performance from producers helped maintain price stability. The European BDO sector continued to operate without major supply chain bottlenecks, ensuring predictable market conditions.

In China, BDO market activity slowed in the peak of the Lunar New Year festival as many downstream factories reduced workloads or halted production. However, supply remained adequate as major manufacturers maintained stable operations following previous maintenance shutdowns. The cost environment remained largely unchanged, with raw material prices showing only minor fluctuations. While short-term demand was muted due to the holiday period, market sentiment suggested a gradual normalization once production resumes post-festival. Industry participants anticipated a clearer market direction in the coming weeks, based on how quickly BDO’s downstream demand recovers.

The international BDO market is expected to remain stable in the near term, with only minor fluctuations anticipated. In the United States, demand is projected to strengthen throughout the year, although policy-related uncertainties could introduce some volatility. In Europe, market players will continue monitoring external factors, particularly developments in China, to assess long-term trends. Meanwhile, in China, post-holiday recovery in industrial activity will be a key factor influencing BDO demand momentum.