The n-Butylene and Isobutylene prices were revamped during July 2023 in the European region as the rise in Crude Oil prices in the past month raised the production and product costs in the market.

Previously, the n-Butylene and Isobutylene prices witnessed consistent decreases in the European region. As per the ChemAnalyst data sources, the n-Butylene and Isobutylene prices have decreased by almost 7% in quarter 3 of 2023. In June, the increase in bank interest rates by the European Central Bank led to buyers becoming more cautious when making purchases, causing them to avoid any unnecessary trading activities. Consequently, the available inventory levels of n-Butylene and Isobutylene rose amid sluggish offtakes from the downstream buyers. The demand for n-Butylene and Isobutylene was low from downstream Polyisobutylene and Methyl Tert-Butyl Ether producers due to the depressed orders from end-user consumers amid impacted purchasing power.

Similarly, n-Butylene and Isobutylene prices decreased due to depressed demand from Butyl Rubber Industries during May 2023. Orders were low from Polyisobutylene producers due to reduced consumption from Sports goods manufacturers amid weak inquiries from end-users due to the rising inflation in the country. Simultaneously, n-Butylene and Isobutylene demand plunged from the downstream Butyl Rubber and Polyisobutylene industries due to weak orders and consumption rates from the downstream Automotive sector and sports equipment producers. Consequently, the inventory levels improved amid declined offtakes from downstream Butyl Rubber industries amid firm availability of materials. Furthermore, the Eurozone manufacturing Purchasing Manager's Index witnessing consistent decreases for the past three months, indicating contractions in manufacturing activities in the region.

At the same time, the decrease in the feedstock Ethylene costs amid volatile upstream Crude Oil prices and weak demand from downstream value chains reduced the production costs of n-Butylene and Isobutylene. Meanwhile, in May, the cost support was low due to a decline in upstream Butadiene prices backed by the reduction in upstream Crude Oil prices. Simultaneously, subdued demand and high inventories of Natural Gas caused consistent falls in Natural Gas prices in the past few months, declining the input and energy costs. It further reduced the variable costs of the production of n-Butylene and Isobutylene.

As per the estimation, "the n-Butylene and Isobutylene are likely to remain firm and escalate further due to anticipated increases in the upstream Crude Oil prices during August. The increasing global demand for Crude Oil will boost petrochemical prices. Simultaneously, the disruption in supply chain activities due to changes in water levels of Rivers like the Rhine will impact the market supply rates."