Iso-Butanol Market Faces Regional Variations in November Amid Supply and Demand Fluctuations

The global Iso-Butanol market experienced varied conditions across Asia, North America, and Europe towards the end of 2024, as supply dynamics in each region fluctuated, accompanied by differing market situations in feedstock Propylene (Refinery Grade) prices. In Southeast Asia, Iso-Butanol prices fluctuated and saw a rebound in mid-November 2024. In North America, Iso-Butanol prices increased slightly towards the end of November 2024, driven by improvements in export conditions and firm pricing strategies by U.S. suppliers. Meanwhile, in Germany, Iso-Butanol prices remained under pressure due to unfavorable export conditions and the ongoing slump in construction activities.

Across all three regions, demand for Iso-Butanol from the paints, coatings, and plasticizer industries was reported as moderate to weak, although it performed slightly better than other oxo-alcohols, especially 2-Ethylhexanol. Suppliers of Iso-Butanol in Europe were reported to be under pressure to dispatch inventories, with market participants expressing pessimistic views for the remainder of the year.

In Southeast Asia, the Iso-Butanol market saw continued supply tightness until mid-November 2024. Prices rose by approximately 0.9% during mid-November due to the shutdown of a large Iso-Butanol plant in Shandong for maintenance, which led to tighter overall supply. As the week ended 22^nd November, some Iso-Butanol plants in Shandong completed their maintenance and resumed operations, increasing the overall supply and pushing prices down by approximately 2%, reversing the previous week's gains.

In Germany, the Iso-Butanol market remained bearish during the first half of November 2024, as transactions were sluggish, and ample supplies circulated. Market discussions were thin, exacerbated by the prolonged downturn in construction activities. However, some inquiries for Iso-Butanol from the downstream Iso-Butyl Acrylate and Iso-Butyl Acetate industries provided some support to Iso-Butanol prices. Overall, the market remained quiet, with suppliers holding a pessimistic outlook for the remainder of the year. As a result, buyers across Europe adopted a disciplined procurement strategy, purchasing only as needed and avoiding bulk inventory accumulation. This caused Iso-Butanol prices to decrease by approximately 8.4% since the beginning of November 2024.

In the U.S. market, Iso-Butanol prices recovered by approximately 5% as some cargoes were reported to be heading for Turkey, which led to a depletion of inventories across U.S. ports. Additionally, U.S. suppliers were strict with their pricing, quoting slightly higher prices to maintain profitability. Demand conditions improved due to a rebound in automotive sales, contributing to a reduction in inventories. Export conditions also improved, with the Association of American Railroads reporting an increase in chemical railcar loadings to 33,170 for the week ending November 16, 2024. Furthermore, Iso-Butanol production was reported to have been lower, as U.S. refinery rates declined from 91.4% in the week ending November 8 to 90.2% in the week ending November 15, 2024, according to data from the EIA, prompting U.S. suppliers to adjust their Iso-Butanol prices.

Overall, the global oxo-alcohol market, including the Iso-Butanol market, remained under pressure from July to October 2024. During this period, new oxo-alcohol capacities in Southeast Asia, particularly in China, increased by over 1 million tonnes per year. Furthermore, additional capacity expansions are anticipated in 2025, which may continue to influence market dynamics. Moreover, towards the end of the year, global prices of Iso-Butanol are expected to decline as seasonally during this time the market witness’s little activity with suppliers being largely under pressure to liquidate their inventories along with the seasonal downturn in the paints and coating industry.