In the first half of April 2024, the n-Propanol price trend showcased an upward movement in South Korea and witnessed a 2.2% incline in quotations. The demand for n-Propanol was consistent from regional and international buyers, while product availability was moderately low due to weak production rates.

The n-Propanol offtakes were steady from cleaning agent manufacturers because of consistent consumption rates from the household sector. The household sector exhibited firm demand for n-Propanol amidst rising temperatures in the Northern Hemisphere and increased consumer orders for cleaning agents due to steady offtakes from the household sector amid the observance of various festivals around the arrival of the spring season. Simultaneously, orders surged from agrochemical industries amid rising demand from domestic buyers during planting season. Consequently, purchases were regular from regional herbicides and insecticide manufacturers for use in the agriculture and horticulture sectors. Moreover, inquiries were cons from the personal care product manufacturers.

At the same time, operating rates were afflicted in the manufacturing units as the availability of n-Propanol stocks was sluggish in the market due to affliction in the production and supply rates amid the moderate availability of feedstock supplies due to escalation in upstream Crude Oil prices and a decline in supplies in the international markets amid geopolitical tensions. Such fluctuations in Crude oil prices often rippled through the petrochemical supply chain, impacting the prices of intermediate products like Ethylene and Propylene.

The cost support on n-Propanol was firm from upstream Ethylene and Propylene prices because of the recent increase in upstream OPEC+ Crude Oil prices amid speculations around Geopolitical tensions between Israel and Iran. A missile attack on an Islamic Republic diplomatic building in Damascus, Syria, resulted in the deaths of seven Iranian military officials. Despite this rally, futures have experienced a slight decline this week due to the impact of inflation data and US crude stockpile levels on the market. Israel issued a warning to Iran, indicating that it will retaliate against the Islamic Republic if Tehran initiates an attack on Israel. Simultaneously, energy costs inclined, which raised the variable production costs of n-Propanol.

Conclusively, the n-Propanol FOB Busan quotations settled at USD 950/MT, in the first half of April 2024.

As per the estimation, n-Propanol prices will incline further due to anticipation of an increase in demand from cleaning agents and daily care products manufacturers amid firm offtakes from end-user consumers during summer. At the same time, production costs for n-Propanol may increase due to anticipated increases in feedstock prices amid increased demand for petrochemicals from downstream value chains during the second quarter of the year.