The US Iso-Butanol market continued its recovery in the first half of July 2024, as conditions have largely returned to normal following OQ Chemicals' declaration of force majeure at its Oberhausen, Germany site. With improving bids and OQ Chemicals' recent price increase, both the European and American Iso-Butanol markets are anticipated to see further gains in August 2024.

Effective August 1, 2024, OQ Chemicals announced a price increase of USD 110 per metric ton for Iso-Butanol and n-Butanol in both North American and European markets, as reported in a press release on July 12, 2024. This price adjustment is expected to bolster n-Butanol and Iso-Butanol prices, driven by the tight supply of feedstock Propylene (Refinery Grade). Several Texas plants declared force majeure due to disruptions and damage from Hurricane Beryl.

INEOS Olefins and Polymers proactively shut down their PE and PP units at Deer Park, Cedar Bayou, and Chocolate Bayou in Texas. A filing with the Texas Commission on Environmental Quality (TCEQ) indicated that flaring lasted for 22 hours following damage to a bleed valve packing, though the process vessel was depressurized to minimize emissions. Dow implemented its weather preparation plan, while LyondellBasell took its Texas cracker offline ahead of the storm. Polymer production facilities in the area are expected to resume once power is restored and transport disruptions are resolved. Enterprise Products shut down its 680,000 MT Propylene Splitter in Mount Belview, Texas due to a process upset, with no known restart date. Similarly, BASF Total Petrochemicals' cracker in Port Arthur, Texas, with a propylene production capacity of 550,000 MT/year, suffered a malfunction due to lightning from the hurricane, leading to reduced Propylene (Refinery Grade) availability and leading to moderate production of Iso-Butanol

Aside from the outages, many Texas facilities experienced power disruptions, further impacting Iso-Butanol production and supply. Additionally, major Texas ports, including Corpus Christi, Houston, Galveston, Freeport, and Texas City, closed on Sunday due to Hurricane Beryl’s approach. The Coast Guard's condition "Zulu" restricted all vessel movement and cargo operations, creating unfavourable export conditions for Iso-Butanol.

Current demand for Iso-Butanol remains weak. On the construction front, mortgage rates, though slightly lower, remain high at 6.95% for 30-year and 6.25% for 25-year fixed terms, which dampens Iso-Butanol demand used in paints and coatings. Single-family housing starts fell by 5.2% to an annual rate of 982,000 units in June 2024, according to the Commerce Department’s Census Bureau. Overall construction spending decreased by 0.1% following a revised 0.3% increase in May 2024. Private construction expenditure fell by 0.3% in June, with residential construction spending down by 0.2%, and new single-family projects seeing a 0.7% drop. Investment in private non-residential structures, including factories, also declined by 0.3% in June. In contrast, public construction projects rose by 0.5%, with state and local government spending increasing by 0.2% and federal government outlays rising by 3.1% after remaining unchanged in April, providing some support to Iso-Butanol prices.