The European producers reduced their Butyl Glycol prices by 4.3% in the first half of June 2024 amid ample availability of supplies with moderate to low demand from buyers and importers. Butyl Glycol demand declined in the international market as Asian importers reduced purchases amidst sluggish consumption in the FMCG sector. Within the Consumer Brands division, total sales decreased marginally by 6.0% to 2,605 million Euros compared to the previous year. However, organic sales, adjusted for currency effects and changes in acquisitions/divestments, increased by 5.2%. Pricing remained robust, but volumes saw a negligible decline due to ongoing portfolio adjustments. Currency fluctuations negatively impacted sales by 4.0%, while acquisitions and divestments further reduced sales by 7.2%.

Meanwhile, Butyl Glycol purchases remained subdued due to reduced buyer stocking practices, keeping market stocks consistently available amid efficient operations at manufacturing plants. Manufacturing activities in Europe showed improvement in May 2024, indicating a moderation in deteriorating business conditions. Despite a decline in factory output, the contraction was the mildest observed in just over a year and relatively minor overall, marking the slowest rate of decline in two years. Upstream Ethylene provided strong cost support, bolstered by a rebound in Crude oil prices and reduced global inventories due to increased buyer consumption. It raised the production costs of Butyl Glycol.

Previously, in May, the Butyl Glycol market in Europe experienced increased consumption and expanded applications within the region's well-established chemical industry, positively influencing market sentiment. Significant demand for Butyl Glycol came from regional manufacturers of personal care products and cleaning agents, industries that typically experience robust demand during the summer months. The heightened interest led to tighter Butyl Glycol availability, creating a more constrained market environment.  In May 2024, the Consumer Price Index (CPI) in the euro area rose by 0.5% month-over-month, indicating a moderate increase in the cost of goods and services for consumers across the region.

According to ChemAnalyst, Ethylene Glycol Monobutyl Ether FOB Hamburg prices witnessed USD 1570/MT at the end of the week concluded on 21st June 2024.

As per the estimation, the demand for Butyl Glycol might decrease from end-user buyers by the end of the quarter due to weak market conditions and sufficient stock availability. Consumption from the pharmaceutical sector is anticipated to decline, contributing to improved market Butyl Glycol inventory levels. Consequently, market participants in the Butyl Glycol industry may adjust their pricing strategies downward to stimulate sales in the market.