In February 2025, the Isobutylene market in China witnessed a declining trend due to the decline in the production cost of the commodity along with the weak demand for the commodity from the downstream Fuel Additives and Lubricants sectors. This made market players lower their ex-quotations resulting in the bearish market sentiments in China.

Key Takeaways:

• The isobutylene market in China showcased bearishness driven by a significant decline in production cost and weak demand.
• Despite the anticipation of a rise in isobutylene prices, post-Lunar New Year, trading activities remained weak due to ample inventory levels.
• Market players showcased cautiousness due to the uncertainty about the US tariffs on Chinese imports.
• At the end of the month, a slight surge in the market activities was witnessed but it was not enough to uplift the market sentiments.

The Isobutylene market in China experienced a decline of 1.63% in February, after experiencing a significant incline in the previous month. The bearishness in the market sentiments of Isobutylene can be associated with the declining production cost along with the weak performance of the downstream Fuel Additives and Lubricants enterprises. The production cost of Isobutylene declined due to a steep decline of 8.25% in the feedstock Isobutane market along with a decline of 3.84% in the upstream Crude Oil market.

Moreover, a surge in the market activities post-Lunar New Year period was anticipated, however, the domestic downstream market sentiments showcased weak performance. This made market players maintain their procurement activities on-demand to avoid further potential decline in the market activities. Furthermore, the market players were showcasing cautious market behavior due to concerns about the US tariffs on Chinese imports. Therefore, trading activities were slow, and the presence of ample inventory levels of Isobutylene was witnessed, pushing the market sentiments downwards, which became more noticeable after the end of the Lunar New Year holidays in China.

In terms of the downstream sectors, the performance of the Fuel Additives and Lubricants witnessed a declining performance during February 2025. Post-holiday, the domestic MTBE market showcased weak performance amid the sluggish demand for gasoline terminals. Therefore, the industry players maintained their limited purchasing activities and, hence, the shipment activities were slow as well, further declining the demand for Isobutylene.

However, at the end of the month, the domestic downstream derivative MTBE market in China witnessed a slight incline in its trend as some large manufacturers prioritized exports which further tightened the supply of the commodity in the domestic market. Simultaneously, the demand for Isobutylene witnessed a slight incline from the end-users and the shipments improved as well. However, this slight incline in the market activities at the end of the month was not sufficient to uplift the market sentiments of Isobutylene in February. Therefore, during this month, the Isobutylene maintained bearishness in its trend.

As per ChemAnalyst, the Isobutylene market in China is anticipated to witness a surge in market activities in the upcoming weeks due to the expected rise in the demand for Isobutylene from the downstream Fuel Additives and Lubricants sectors in China.