The global n-Butanol market entered April 2025 on a bullish note, with price increments observed across the European, North American, and Asian markets. Market dynamics varied significantly—China experienced supply curtailments, North America saw a rise in production costs, and Europe faced pockets of regional scarcity.

Demand trends also showed variation across regions. In China, the construction sector showed early signs of stabilization; however, follow-up orders for n-Butanol remained limited. In the US, producers and suppliers largely passed on higher feedstock costs, particularly Propylene (Refinery Grade)—to downstream buyers, resulting in a noticeable uptick in n-Butanol prices. In Europe, low production levels continued to contribute to localized supply tightness.

In both the US and European markets, suppliers ramped up inventory stocking in anticipation of deliveries scheduled for April, aligning with the typical seasonal uptick in homebuilding activity. However, in Europe, weak performance in the construction sector continued to exert downward pressure on n-Butanol prices.

In the US, n-Butanol prices rose by approximately 0.9% during the first week of April 2025. This followed an 8% increase in feedstock Propylene (Refinery Grade) prices, which pushed production costs higher. US refinery rates also declined marginally—from 87% in the week ending March 21 to 86% in the week ending March 28—contributing to tighter feedstock supply and, in turn, higher prices. Additionally, US n-Butanol producers maintained disciplined run rates to avoid inventory buildup, supporting a continued upward trend in prices.

Demand from the paints and coatings sector improved, bolstered by an 11.2% increase in US housing starts, as reported by the US Census Bureau. Suppliers also reported lower inventory levels at warehouses, prompting restocking activity in anticipation of the peak homebuilding season in April—further driving prices upward.

Across European markets, n-Butanol prices increased by approximately 1.3%. Producers have continued to operate at moderate to low run rates since December 2024. Post-March 2025, suppliers reported inventory shortages at warehouses, contributing to the price rise. However, the price gains were capped by a 4.5% depreciation in feedstock Propylene prices. In late March, multiple Fluid Catalytic Cracking (FCC) units increased their run rates after historically low output during the destocking period, leading to a drop in contract Propylene prices for Europe by around EUR 55/tonne—significantly easing production costs. Despite this, low operating rates maintained by German producers at their oxo-alcohol facilities, including those producing n-Butanol, continued to constrain supply, creating regional scarcity in the market.

In the Asian market, n-Butanol prices rose by approximately 1% in April 2025. Operating rates declined by roughly 1.17% due to planned shutdowns for maintenance and repair work, which led to reduced output. Suppliers reported low warehouse inventory levels after widespread inventory liquidation during March 2025, supporting the upward momentum in prices. However, gains were largely limited by a 2.3% drop in feedstock Propylene prices, attributed to improved supply. This was supported by a 1.8% increase in PDH (Propane Dehydrogenation) unit operating rates, which were last assessed at 68.1%, thereby placing some downward pressure on n-Butanol prices.

As per current anticipations, prices of n-Butanol are expected to continue rising in the US and Chinese markets, as suppliers persist with restocking efforts in response to increased homebuilding activities. In contrast, across the European market, prices are likely to remain stable aside from marginal fluctuations. German producers are expected to maintain lower run rates due to increasing competition from China, where oxo-alcohol production capacity—including n-Butanol—has currently exceeded 2.5 million tonnes per annum, with further news production capacities to come online later this year.