For the Quarter Ending September 2024
North America
In Q3 2024, Butanediol pricing in North America experienced a mixed trend. The first half of the quarter saw a notable increase, with the USA showcasing the most significant price changes. This uptrend was influenced by robust demand from key industries like polyurethane, PBT, and spandex, which outpaced supply levels. Additionally, supply constraints due to technical issues, maintenance shutdowns, and rising feedstock costs elevated production costs, pushing prices higher. The market displayed a positive correlation between demand spikes and price hikes, supported by stable input costs and export demands to various markets.
In the second half of the quarter, however, Butanediol (BDO) prices declined due to several key factors. A seasonal slowdown in demand from downstream industries, particularly PTMEG and PBT, significantly impacted consumption. Increased domestic production, driven by improved plant efficiencies, created a market surplus, while inventory adjustments by producers and distributors added to the supply. Furthermore, port congestion stemming from a potential strike at East Coast ports heightened shipping delays, disrupting logistics and adding to market uncertainty. This combination of factors reinforced the downward pressure on BDO prices during this period.
The quarter-on-quarter change of -7% highlights a significant rebound in prices within a short timeframe. As Q3 draws to a close, the latest price stands at USD 1670/MT for 1,4 Butanediol DEL Texas in the USA, signaling a strong upward trajectory in pricing trends.
APAC
Throughout the 3rd quarter of 2024, the APAC region experienced a notable decline in Butanediol prices, primarily influenced by several significant factors. Seasonal variations and a slight economic slowdown contributed to reduced prices. However, consistent demand from downstream industries such as Polybutylene Adipate Terephthalate, tetrahydrofuran, Polyurethane resin, and spandex led to a high production and supply. This surplus, coupled with increased domestic production and inventory adjustments, exerted downward pressure on prices. Additionally, declining feedstock prices, stable production costs, and cautious purchasing behavior further contributed to the price decrease. China witnessed the most significant price changes, with a quarter-on-quarter decline of 4% recorded for 2024, and a notable 7% difference between the first and second halves of the quarter. This downward trend culminated in a quarter-ending price of USD 1012/MT for 1,4 Butanediol Ex-Qingdao in China. The overall trend reflected a negative pricing environment characterized by stability in production costs and a surplus in supply, resulting in a continuous decline in Butanediol prices.
Europe
Throughout Q3 2024, the European Butanediol market experienced stable prices, with Germany witnessing the most significant fluctuations. Weakening demand in sectors such as construction, paints, and coatings, coupled with a slowing economy, exerted downward pressure on prices. However, stable demand from segments like tetrahydrofuran (THF) production, PBT, polyurethane (PU) resin, and spandex mitigated these declines. Additionally, a stable global BDO supply contributed to overall price stability.
The market faced challenges from port congestion, exacerbated by recent strikes and longer transit times from the Red Sea, but these disruptions were somewhat alleviated by a slight easing of congestion. Overall, adequate inventory levels and a stable economic environment supported consistent pricing throughout the quarter.
Germany, experiencing the most fluctuations, saw a -12% change from the previous quarter in 2024. The quarter-ending price for 1,4-Butanediol DDP Frankfurt in Germany was USD 1664/MT. Overall, the pricing environment for Butanediol in quarter 3 2024 remained consistently stable, focusing on maintaining competitiveness in a fluctuating market.
For the Quarter Ending June 2024
North America
Q2 2024 was marked by fluctuating Butanediol (BDO) prices in North America due to several key factors. In the first half of the quarter, prices showed an upward trend, driven by improved economic conditions and increased manufacturing activities, which enhanced the availability of finished goods. Despite average downstream demand, rising propylene prices at the end of Q1 led to higher production costs. Although US construction spending dipped and energy inventories fluctuated, the market remained bullish with expectations for higher prices supported by limited manufacturing activities and anticipated international demand increases.
However, the latter part of Q2 saw a shift as a significant oversupply emerged from increased production levels and higher import volumes. This surplus was exacerbated by lower consumption in key downstream industries, such as Tetrahydrofuran (THF) production and solvents, leading to excess inventory. Additionally, reduced n-butane feedstock costs lowered production expenses, enabling more competitive pricing. Economic indicators, including a decrease in the producer price index, also reflected lower overall costs and negatively impacted market sentiment.
The quarter concluded with a 6% decrease in BDO prices from the previous quarter and a 3% reduction from the first to the second half of Q2. The final price for 1-4 Butanediol DEL Texas settled at USD 1649/MT. Overall, Q2 2024 exhibited a mixed trend in BDO prices, influenced by fluctuations in demand, supply dynamics, and broader economic factors.
Europe
During Q2 2024, the European Butanediol (BDO) market experienced a hybrid trend with significant fluctuations. In the first two months, prices in Germany rose due to a stronger-than-expected economic recovery, boosting demand in downstream industries like polyurethane and PBT resins. Seasonal factors tightened the supply-demand balance, while production issues, technical problems, and logistics disruptions further strained supply. Rising raw material costs for key feedstocks, such as n-butane and maleic anhydride, increased production expenses, compounded by global supply tightness and currency fluctuations.
However, by the end of the quarter, prices declined due to reduced demand from key sectors, including paints, coatings, solvents, and tetrahydrofuran (THF) production, coupled with sluggish growth in construction. This seasonal downturn led to an accumulation of inventories, with production outpacing weak demand. Stable upstream feedstock prices and reduced export volumes contributed to the domestic supply glut, leading to lower prices. Compared to the previous quarter, BDO prices showed a 4% increase, underscoring persistent downward pressure.
Overall, Q2 2024 saw BDO prices in Germany ending at USD 1728/MT DDP Frankfurt, reflecting a bearish market sentiment. The quarter's mixed trend was driven by fluctuating demand, excess supply, regional disparities, and inventory adjustments, alongside raw material cost changes and broader economic factors.
APAC
In Q2 2024, the Butanediol (BDO) market in the APAC region exhibited a mixed pricing trend influenced by several key factors. Initially, prices in South Korea declined in the first two months due to weak demand and stable feedstock costs. Downstream industries, such as paints and coatings, showed moderate demand in line with the regional economic slowdown. Additionally, subdued demand from China, affected by Spring Festival maintenance closures and a sluggish construction sector, further dampened market activity. Stable propylene prices offered limited support, leading to a bearish market characterized by moderate supply and low to moderate demand.
As the quarter progressed, prices saw an uptick driven by increased demand from downstream industries and higher production costs. Seasonal factors, especially in paints, coatings, and construction, contributed to this increase, alongside stable feedstock prices for n-butane and maleic anhydride, which maintained production costs but added upward pressure on final BDO prices. Ongoing inflationary pressures and fluctuations in natural gas prices also influenced market dynamics, resulting in a gradual increase in BDO prices.
Despite a -7% decrease from the previous quarter, indicating a less volatile but stabilizing market, the latest quarter-ending price was USD 1158/MT for 1,4-Butanediol Spot Ex-Busan in South Korea. This reflects a hybrid pricing environment, suggesting that while there were fluctuations, the overall sentiment for BDO pricing in the APAC region remained cautiously optimistic, driven by a balanced interplay of demand, cost factors, and seasonal variations.
For the Quarter Ending March 2024
North America
The first quarter of 2024 has been challenging for Butanediol pricing in the North America region, as a number of significant factors have influenced market prices. One of the key factors was the occurrence of several plant shutdowns in the region, which led to a decrease in supply and subsequently drove prices up. Additionally, there were other supply constraints, such as transportation disruptions and raw material shortages, which further contributed to the upward pressure on prices.
Among the countries in the region, the United States experienced the most significant price changes. Overall, there has been a positive trend in Butanediol prices, with an 11% increase compared to the previous quarter in 2024. This positive trend can also be observed when comparing the first and second half of the quarter, with a 7% price increase.
These price changes in the first quarter of 2024 reflect a stable and consistently increasing pricing environment for Butanediol in the North America region. Despite the challenges faced, the market has managed to maintain a positive sentiment, with prices reaching USD 1766/MT of 1-4 Butanediol DEL Texas in the USA by the end of the quarter.
APAC
The pricing environment for Butanediol in the APAC region during Q1 2024 has been predominantly negative, with prices experiencing a significant decline. Several factors have contributed to this downward trend. Firstly, weak demand from downstream industries, particularly in the construction sector, has weighed on prices. The regional economic slowdown has also dampened demand, while the Spring Festival Holidays in China have led to reduced procurement from manufacturers in the country. Additionally, the ongoing maintenance shutdowns by Chinese manufacturers have further limited demand.
In South Korea, the market has seen the maximum price changes compared to other countries in the region. The overall trend for Butanediol prices in South Korea has been negative, with a significant decrease of 30% compared to the same quarter last year. In Q1 2024, prices decreased by 13% compared to the previous quarter. Furthermore, there was a slight decline of 2% in prices between the first and second half of the quarter.
As the quarter comes to an end, the latest recorded price for Butanediol in South Korea stands at USD 1158/MT of 1-4 Butanediol Spot Ex-Busan. Overall, the pricing environment for Butanediol in the APAC region, and specifically in South Korea, has been negative, with prices experiencing a significant decline during Q1 2024.
Europe
The Butanediol pricing environment in Q1 2024 for the Europe region, particularly in Germany, has been characterized by negative trends and fluctuating prices. Several factors contributed to the price changes. Firstly, supply constraints and increased demand from various industries, such as automotive and construction, led to a tightening market. This resulted in upward pressure on prices. Additionally, rising raw material costs, particularly for feedstocks like propylene, further impacted the pricing dynamics.
Germany witnessed the maximum price changes during this quarter. This can be attributed to its strong industrial base and high demand for Butanediol in sectors like automotive manufacturing. The country experienced an overall downward trend in prices, with a percentage change of -13% compared to the same quarter last year. However, there was a slight improvement from the previous quarter in 2024, with a recorded percentage change of 3%.
As Q1 2024 came to a close, the price for 1,4-Butanediol DDP Frankfurt in Germany stood at USD 1831/MT. This reflects the negative sentiment in the market, as prices continued to decrease throughout the quarter.
For the Quarter Ending December 2023
North America
Throughout Q4 2023, the Butanediol market in North America underwent significant fluctuations, impacted by several factors. Firstly, the limited availability of feedstocks such as Maleic Anhydride and benzene caused an increase in production costs, leading to a rise in the overall market pricing.
Secondly, demand for Butanediol from the downstream industries remained moderate, with the construction and paints sector rebounding slowly. Another factor influencing the market dynamics was the destocking behaviour of buyers before the winter holidays, leading to a decrease in market inquiries. In the USA, the housing market's current state, with rising mortgage rates and limited availability of homes, also negatively impacted the demand for Butanediol.
Additionally, the volatility in feedstock prices and the sluggish demand governed the overall Butanediol prices in the US market, resulting in a stable market situation throughout the quarter. No plant shutdowns were reported during this period. The price trend for Butanediol in the US market remained on the lower side due to the declined feedstock values, leading to higher production costs. The correlation price percentage for the selected country (USA) was negative, indicating a decline in prices throughout the quarter. The price percentage comparison for the first and second half of the quarter was not significant. The current quarter's ending price for 1-4 Butanediol DEL Texas in the USA was observed at USD 1578/MT.
APAC
The fourth quarter of 2023 for the Butanediol market in the APAC region was characterized by stable supply and subdued post-festive demand, leading to an overall stability in prices. However, the Chinese BDO market faced a 1% negative growth due to cautious traders and weak demand in downstream sectors.
The construction and cement sector in China remained under pressure, further impacting the market. India declared a five-year halt on the establishment of new coal power plants, excluding those already in the planning stage, which impacted the downstream demand for Butanediol. South Korea experienced the maximum change in prices with a 0.7% decline, primarily driven by a low trading activities in the broader Asian market.
The trend and seasonality of Butanediol prices in South Korea for Q4 2023 remained negative, reflecting an 11% decrease from the same quarter in the previous year and a 15% decrease from the previous quarter. Additionally, prices in the second half of the quarter decreased by 10% compared to the first half. The latest price of Butanediol in South Korea for Q4 2023 was USD 1352/MT of 1-4 Butanediol Spot Ex-Busan.
Europe
During the current quarter of 2023, the Butanediol market in Europe remained stable, with prices holding steady due to consistent imports and a lack of fresh inquiries. Additionally, suppliers faced heightened competition from the Asian market, further contributing to price stability. The weak construction sector and lack of demand also played a significant role in the overall price dynamics of Butanediol in Germany, which experienced a decline in inflation. The consumer price index for Germany indicated a decrease in inflation, and Italian businesses saw a decline in morale for the fourth consecutive month, reaching its lowest level since 2021. However, despite a 1.5% increase in feedstock value, the price of Butanediol remained stable in the UK market. No plant shutdowns were reported during this quarter. The price of 1,4-Butanediol DDP Frankfurt in Germany for the current quarter is USD 1788/MT. The price trend for the selected country of Germany remained stable throughout the quarter, with no significant trend or seasonality observed. In comparison to the same quarter last year, there was no change in the price, while the percentage change from the current to the previous quarter was 1%. The price percentage comparison of the first and second half of the quarter remained unchanged. Overall, the Butanediol market in Europe remained stable with few significant changes during the current quarter.
For the Quarter Ending September 2023
North America
Butanediol prices in the regional market retarded throughout the third quarter as the demand remained suppressed from downstream sectors. Although there has been a slight uptick in raw material expenses, the overall impact has been limited. Selling prices, however, have remained stable as manufacturers aimed to stay competitive and boost sales. In contrast, global crude oil prices have consistently risen in the first half of Q3, putting pressure on the cost of naphtha and its derivatives. The rapid increase in mortgage rates and a significant decline in home sales had raised concerns among some butanediol manufacturers. This has prompted them to prepare for potential challenges in the future. The outlook for affordable housing construction and the paint industry in the United States is undergoing significant changes over the next two years. Analysts predict that developers are getting ready for a substantial shortage that could potentially reverse the progress made in addressing the persistent shortage of affordable housing in many US cities.
Asia-Pacific
In the third quarter of 2023, the butanediol price dynamic range fluctuated due to moderate demand amid stockpile shortages and oscillating economic fluctuations in the country. Meanwhile, in the Asian market, OPEC basket prices have risen due to post-production factors and a limited supply of crude oil. This heightened demand for Butanediol has been observed both domestically and internationally, particularly as other Asian countries faced supply shortages due to plant shutdowns. Sinopec Great Wall Chemicals halted their production for maintenance purposes in the Chinese market. Industries downstream of Butanediol, such as paints, coatings, and tetrahydrofuran, have seen moderate demand as the construction and other sectors have started to recover. However, the industrial output in the Chinese market remains somewhat constrained as investors wait for more favorable opportunities in the weeks ahead. The South Korean industry data indicates that South Korean shipbuilders lagged significantly behind Chinese competitors in securing new international orders in August. This drop in demand has led them to rank second globally.
Europe
During the third quarter of 2023, prices of Butanediol in the European market showed a continuous decline in the market. Butanediol prices decreased due to a continuous drop in demand from downstream sectors like paints, coatings, and construction. Suppliers focused on reducing their existing stockpiles to meet domestic demand in response to the sluggish demand outlook. In Germany, inflation had increased throughout Q3, as the Federal Statistics Office reported. Adjusted for comparison with other European Union nations, consumer prices in Germany saw a year-on-year rise. Industrial production in Germany has also declined for the second consecutive month. The German Economy Ministry has warned that high energy costs and interest rates have had a negative impact on the economy despite an increase in demand. Demand for Butanediol from downstream sectors like tetrahydrofuran and the construction industry has remained subdued. Additionally, global crude oil prices have consistently gone up in the first half of Q3, increasing cost pressures on naphtha and its derivatives.
For the Quarter Ending June 2023
North America
The slow demand from the downstream industries of construction, PTMEG, and polymers impacted the domestic market expansion during the second quarter of 2023, which saw Butanediol exhibit declining behavior. In addition, the US market's economic conditions had deteriorated due to the raging inflation pressures and concerns about a financial crisis brought on by the failures of Silicon Valley and Signature Bank at the beginning of the quarter. With the decrease in new request arrangement and the expense input, regional Butanediol creation cost in the US market stayed at more slow speed. Demand from North American and European markets continued to rise sluggishly. US west coast ports saw a 37% drop in compartment imports, which was fundamentally lower than the highs of the earlier year. Butanediol prices in the United States decreased slightly due to lower-than-anticipated product demand and inadequate production capacity. Despite the positive US PMI, which rose to 48.5 due to a significant drop in new orders and weak demand, Butanediol's overall market sentiments decreased. Purchases fell even more sharply in response to efforts to reduce inventory, indicating lower output growth. Towards the quarter's end, Butanediol prices were witnessed at USD 1949 per MT, FOB Texas, USA.
Asia-Pacific
In the second quarter of 2023, the butanediol price dynamic range fluctuated due to slow demand amid stockpile shortages and oscillating economic fluctuations in the country. Delicate client spending was the essential part behind the hindering cost elements of Butanediol towards the finish of the quarter. Additionally, the supply disruption had an impact on the operational activities of end-use industries that rely heavily on Butanediol for their production. Due to maintenance shutdowns and force majeure, major butanediol manufacturers in various Asia-Pacific nations were unable to produce enough of the product. Inner Mongolia Dongyuan Tech Ltd. in China, Wuheng Chemicals in China, and Korean Ptg Co. Ltd. in Ulsan in South Korea remained closed, resulting in a feedstock shortage toward the middle of the quarter. The large stockpile of Butanediol available to construction and PET manufacturers, which led to fewer inquiries about the product, was another factor influencing the overall price dynamics of the substance. Butanediol prices reached USD 1812 per MT, FOB Busan, South Korea, toward the end of the quarter.
Europe
During the second quarter of 2023, prices of Butanediol in the European market showed a slight decline in market dynamics due to a shortage of supply and weak demand. The inflation rate remained high as the German market entered a recession, preventing buyers from placing larger orders. A decrease in demand from the downstream tetrahydrofuran market had a proportional impact on Butanediol's overall market dynamics in the German market. Protests by union members continued to affect the supply chain and the product's outlook for demand from domestic end-user consumers. In spite of the effect of a worker's guild part's dissent on the country's rail line framework, the domestic production network stayed tight. Selling prices were affected due to these aspects having a proportional effect on the product's production rate and cost in the exporting nation. Butanediol's overall market dynamics were impacted by the product's softer demand outlook from the construction and THF sectors, which resulted in price quotations of USD 2336 per MT, FD Karlsruhe.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, Butanediol prices witnessed an inclining trend on account of an inclined demand outlook and fluctuating feedstock (maleic anhydride) prices. The country's economic situation improved towards the quarter end, and industrial activity increased at a slow pace amidst the predicted economic recession and bank crisis. However, the coating industries remained slow as demand in the housing sector remained weak. The country's domestic production rate was modest, with adequate stocks. Several companies reported that high inflation and adequate stock levels at customers harmed demand circumstances in the third month.
Asia Pacific
Asia-Pacific region showcased mixed sentiments throughout the first quarter of 2023, backed by varying factors such as slowed industrial production and fluctuating demand outlook for the product from the downstream (tetrahydrofuran) sector. Overall Asian buyers faced a tight supply of the product amidst the Lunar holidays in China (major exporter). Manufacturers received fewer queries as purchasers demonstrated a wait-and-see attitude towards the end of the first quarter. In order to meet the slow demand strength, inventories restarted the operational rate for the product. Due to logistics challenges encountered by major suppliers, many empty containers and truck drivers remained hesitant to resume work. Most downstream businesses were under cost pressure due to the sluggish follow-up of terminal demand, with a low intention to purchase raw materials and drastically depressed pricing.
Europe
Throughout the first quarter of 2023, Butanediol prices remained constant, with minor fluctuations in the European market. Importing prices continued to rise towards the mid-quarter as the Chinese market (exporter) restarted the operational rate and influenced final pricing. The German market was dealing with economic uncertainty, which drove up commodity prices. The product's demand also shifted slightly as the tetrahydrofuran market and other coating goods governed final costs in Germany. The product received little attention from manufacturers. German housing was at its lowest point as prices had fallen. The coating industry is suffering from a lack of demand.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, Butanediol prices in the North American region fell sharply on account of weak demand and low output. Decline in feedstock (Maleic Anhydride) prices in the regional market. The industrial units operated at a slower pace as the new order rate declined. In October, the dollar rate remained strong, yet, the demand from the international market did not reach the expected target. In the mid-quarter, a continuous decline in feedstock prices along with a temporary halt in operational units on the occasion of the thanksgiving holidays, dragged the Butanediol prices in the regional market. In December, the arrival of storm Elliot, along with the Christmas and New Year holidays, hampered the supply chain, and the operational rate remained slow. Towards the quarter's end, Butanediol prices were observed at USD 2164 per MT, FOB Texas (USA).
Asia Pacific
In the Asia-Pacific region, the market dynamics moved southwards throughout the fourth quarter of 2022. The butanediol market trend in China remained weak as the downstream (tetrahydrofuran and coating industries) demand shrank. The manufacturers and suppliers did not receive much inquiry about the product pressuring them to decline the BDO prices along with the feedstock (Maleic Anhydride) prices in the domestic market. Major buyers and traders showcased a wait-n-see attitude and were aiming to stock the product after the holidays. Dairen chemicals in Taiwan had shut down its plant, hampering the supply chain in the regional market. The freight charges were reduced towards the end of Q4 impacting the final prices of Butanediol in the country like South Korea. The market prices of Butanediol settled at USD 1363/MT, FOB Qingdao (China)
Europe
In the last quarter of 2022, the butanediol market trend was dragged by the bearish downstream demand and low importing prices from major exporting countries. The inflation rate increased in the country, hampering the demand-supply chain. New orders fell as the industrial output slowed in the region, and the clients were concerned about buying the product amid the ongoing economic uncertainty. The energy crisis remained in the regional market, and the demand slowed towards the quarter end. Oversupply of the product with end-use industries occurred as the demand outlook was weak. Christmas and New Year holidays declined the operational rate in the country, proportionally impacting the final prices of Butanediol. In December, Butanediol prices settled at USD 1715 per MT, DDP Frankfurt.
For the Quarter Ending September 2022
North America
Butanediol prices in North America have displayed mixed sentiments in the third Quarter of 2022, owing to fluctuating demand from the downstream spandex segment. As consumer demand fell and the inflation rate for several commodities continued to rise unabatedly in recent weeks, speculations around a US recession gained traction. Demand from downstream industries, such as the solvent and spandex sectors, remained slow, tipping the scales in favor of the slower growth rates of the US economy. As a result, downstream buyers entered the market to observe and wait, making cautious purchases and lowering bargaining power. Thus, the 1-4 Butanediol prices for FOB Texas (USA) settled at USD 4970/MT.
Asia Pacific
In the Chinese market, Butanediol prices showcased dwindling market dynamics in the third Quarter of 2022 owing to the higher inventory level. According to market participants, Henan Energy Chemical Group Fine Chemical switching and other firms reducing their production loads boosted the BDO market's supply side. The total demand was weak due to a significant decrease in the downstream PTMEG market and a modest decline in upstream manufacturing. As a result, the price of BDO has continued to fall as the market's supply, and demand fundamentals remain supply dominated. The Yuan, the local currency, has depreciated, resulting in high feedstock import prices in China. As a ripple effect, FOB Qingdao (China) 1,4 Butanediol prices settled at USD 1850/MT.
Europe
In the German market, Butanediol prices witnessed a mixed trend in the third Quarter of 2022 on the back of declining feedstock (benzene) prices in the domestic market. According to market participants, benzene prices in Germany have continued to fall as natural gas supplies have tightened. The chemical industries are facing uncertainty due to the natural gas shortage, which has resulted in a drop in feedstock pricing. While the German market has sufficient inventories to meet domestic demand, offtakes from the end-use, THF, coating, and adhesive industries have remained slow amid growing fears of a European recession. The workers' union went on a strike at several European ports delaying the transit time during the second half of the Quarter, thus impacting the logistics. As a ripple effect, the 1,4-Butanediol prices for Ex-Karlsruhe (Germany) and FD Wuppertal (Germany) settled at USD 5870/MT and USD 5450/MT.
For the Quarter Ending June 2022
North America
Butanediol prices in Q2 2022 first increased and then decreased. The seesawing trend showed by the prices of Butanediol in the US market due to the double shock of Covid-19 and the Russian-Ukraine war and high inflation rates pose a significant threat of stagflation to many countries worldwide. The prospect of stagflation is alarming because there are few ways to tackle the issue. Butanediol prices have risen in the United States as solvent prices have risen globally, with Petrochemicals futures up by 13% in May. Furthermore, Since the US imposed sanctions in March, American refineries have stopped welcoming tanker ships laden with Russian oil, creating an imbalance in the market of crude derivatives. Recent supply chain problems have compounded the country's pricing crisis. The prices offered at FOB Texas for 1,4-Butanediol were assessed at USD 5725/MT in June, showcasing a month-on-month inclination of 3%.
APAC
Butanediol prices have been plummeting in China over the last quarter, leaving no opportunity for negotiation. The volume of trade and shipping is therefore decreasing. The supply of BDO in the Chinese mainland gradually resumes at the beginning of March. BDO plants are currently operating at an overall rate of more than 75%. Units from Shaanxi Ronghe and Xinjiang Tianye has restarted in May. Butanediol has majorly experienced a downward sentiment in the Chinese market this quarter due to the fluctuations in global crude oil prices, which significantly increased the cost of raw materials and has supported BDO price declines on the domestic market. Prices of Butanediol Spot Ex-Qingdao, which were settled at about USD 3289/MT in the week ending July 1, fell by roughly 2%.
Europe
Butanediol prices soared in the UK market during the third week ending June, owing to a regional supply constraint. However, demand from end-user industries, including medicines and solvents, remained robust, owing to increased panic buying by downstream consumers concerned about inventory shortages. With disrupted supply chains, countries like the United States, the United Kingdom, and the eurozone are already seeing record-breaking inflation rates. High freight expenses along multiple trade routes continued to impact Butanediol supplies across Europe and Southeast Asia, increasing prices. On the other side, major butanediol producers, including Ashland and LyondellBasell, have been continuously raising their prices in Europe and other countries since the beginning of the year. DDP Immingham offers for 1,4-Butanediol settled at USD 7163/MT, indicating a rise of 2% monthly.
For the Quarter Ending March 2022
North America
In the North America, the prices of Butanediol continued to increase since the beginning of Q1 of 2022. This rise was attributed to the strong demand from the derivative segments including Tetrahydrofuran and Polybutylene Terephthalate and PTMEG industry along with increased consumption in the downstream paints and coatings industry across the region. The global BDO, PTMEG and Spandex market witnessed modest growth in the United States. The continuing solid demand from downstream sectors and the PTMEG and PBAT resin markets remained another factor for price increments. Furthermore, upstream Crude oil volatility amidst the Russia-Ukraine war had a significant impact on pricing. In addition, with effect from January 1st, Ashland, a key player in the global market, has increased the pricing for all grades of BDO in the North American region the January 2022. The most recent estimate for March prices was USD 5510 per metric ton FOB Texas.
Asia Pacific
During the first quarter of 2022, 1,4-Butanediol prices remained on an upward trajectory, similar to the previous quarter, as freight rates throughout the world reached new highs, affecting BDO supply as solvents in the region. Traders were increasing the price of their products at significant rates in response to apparent downstream demand in order to profit from the worsened supply shortfall. Because of strong purchasing sentiment and substantial demand from the downstream Polytetramethylene Ether Glycol (PTMEG) and Polybutylene Terephthalate (PBAT) industries, India's Butanediol (BDO) prices remained strong this quarter. It has been observed that the price of upstream crude oil has risen, and factories have begun to feel the pinch of higher input costs. BDO FOB Qingdao offers have risen to USD4420/MT, extending strong gains during the Chinese Lunar New Year, while bulk BDO Ex-Mumbai offers have settled at USD6209/MT.
Europe
Butanediol prices in Germany were strong throughout Q1, but they showed mixed tendencies in the previous quarter. The price increase was caused by increased demand for the commodity from downstream derivative makers. BDO had been on an upward trajectory as supply restrictions in the international market in the United States and China increased, hitting Germany and the European region. Because downstream PBAT resins and PTMEG makers felt the squeeze of dwindling supply, they boosted their offerings. Domestic production in the Germany during Q1 has fallen by a large amount year on year. Furthermore, pharmaceutical, and solvent demand has been strong and persistent, driving up prices. The ongoing geopolitical issues between Russia and Ukraine, on the other hand, have put pressure on upstream commodities, affecting the value chain. According to BASF, improved consumption from the downstream Polyurethanes and pharmaceuticals sectors pushed prices for 1,4-Butanediol Ex-Karlsruhe to USD 6945/MT in March.
For the Quarter Ending December 2021
North America
During Q4 2021, the price of Butanediol (BDO) in North America increased exponentially due to increased demand from downstream sectors and supply constraints caused by a raw material scarcity. During the fourth quarter of 2021, Ashland and several other major companies raised pricing on 1,4-butanediol (BDO) and many derivative commodities. The most recent estimate for December prices was USD 4160 per metric ton FOB Texas.
Asia
Global producers such as Ashland, Mitsui, and BASF have raised their product pricing in Asia, driving up the cost of imports in the Indian market. As a result, the BDO price increased dramatically and was heard hovering around INR 465220/MT Ex-Mumbai in December. On the demand side, consumption for BDO remained steady from the downstream THF and PU sectors throughout this timeframe, despite a resurgence in the automobile sector, which intensified the overall demand fundamentals. The Chinese market deteriorated as a result of the dual energy control policy, but it improved by the end of the quarter.
Europe
During the fourth quarter of 2021, BASF, a major worldwide player, raised prices for butanediol and derivatives in Europe. Due to production disruptions at a major producer's facility, as well as lower imports from Asia, BDO supplies remained limited in Q4. The resumption of downstream operations in November sparked active restocking, resulting in a higher demand for BDO derivatives. Players, on the other hand, were cautious about the impact of demand fundamentals and current supply restrictions, keeping the price range in the last weeks of December around USD 2836/tonne Ex-Hamburg.
For the Quarter Ending September 2021
North America
North American market registered an uptrend in the prices of Butanediol during the third quarter backed by the strong demand from downstream segments including Tetrahydrofuran and Polybutylene Terephthalate. In addition, Ida hurricane made landfall in August across the Gulf Coast of the USA that led to the shutdown of many production plants due to power outages in the region. BASF, a major producer of BDO shut down its production plant in Louisiana as a repercussion of hurricane Ida. Hence, due to this climate calamity, disturbance in the logistics led to supply shortages which consequently caused the hike in the prices of Butanediol in the region during this quarter.
Asia
Asian market experienced an exponential rise in the prices of Butanediol (BDO) during Q3 2021, owing to the surged demand from downstream industries and the supply crunches. In China, BDO prices escalated as the supply remained tight throughout the quarter supported by the curtailment in the production. Moreover, price hike was also driven by the congestion on several ports in China. FOB Qingdao Butanediol monthly average prices stood at USD 4342/MT in September showcasing a hike by USD 692/MT since July. In India, Butanediol prices witnessed a steep climb through the quarter backed by the sturdy demand from downstream sectors and crippled supply from the European region. In addition, excessive freight charges and container shortage during this quarter also sent ripples to the price of Butanediol. Thus, a persistent rise in the BDO prices was witnessed throughout Q3, Ex Mumbai prices settled at USD 5292.93/MT in September.
Europe
In Q3 2021, Butanediol prices soared in the European market following the same trend as other regions. The demand for BDO remained firm in both domestic and international market despite the low rates of production due to the inflation in the natural gas prices that consequently fumed the prices of Butanediol during this quarter. In addition, the exorbitant freight charges across the Europe-Asia and Europe-US interoceanic trade routes and extreme container shortage further contributed to the hike in the pricing trend of BDO in Europe.
For the Quarter Ending June 2021
North America
Butanediol (BDO) market in North America encountered robust demand amidst critical supply shortage. Post freezing fallout in the Gulf of USA, prices of BDO kept tracing upward trajectory due to several operational hindrances and robust demand from downstream sectors like Tetrahydrofuran and Polybutylene Terephthalate. In addition, incidents of supply shortages were also witnessed due to disrupted transportation chains. A major BDO manufacturer, BASF was heard increasing the prices in North America, with effect from 1st April 2021. Therefore, a steep rise by around 30% in prices of Butanediol (BDO) was observed across North America region during Q2 2021.
Asia
Asian market experienced mixed sentiments of Butanediol (BDO) during Q2 2021, as the demand and supply activities varied country over country throughout the quarter. In China, BDO prices escalated till April due to critical supply shortage, as several plants underwent maintenance turnarounds in the country. After gaining tremendous value, Butanediol (BDO) prices declined by more than 30% in May and reached USD 3320/MT till mid- May in China. While in India, BDO prices declined effectively during May and settled at USD 2886/MT, due to the second wave of pandemic in the country, as the demand reduced to a level that compelled traders to sell their stocks at a cheaper rate.
Europe
Following the global market fundamentals, prices of Butanediol (BDO) rose effectively in Europe during Q2 2021. European BDO manufacturers witnessed firm enquiries from Asia, amid an extreme supply crunch. Major manufacturers like Ashland increased their BDO prices for Europe in the month of April, due to continuous rise in demand and limited availability. On the demand perspective, demand from downstream Polybutylene Terephthalate (PBT) manufacturers remained robust throughout the quarter.
For the Quarter Ending March 2021
North America
North American region witnessed critical shortage of Butanediol (BDO) and its derivatives, thus faced extreme difficulties to fulfil the demand from downstream sectors. Extreme cold disrupted the total output of the US gulf and created a huge shortage of almost all the necessary chemicals across the region and globally, as several major producers announced force majeure on their plants under these conditions. Furthermore, the demand from downstream sectors to make PU, THF and GBL remained extremely high throughout the quarter. Meanwhile due to the widened demand and supply gap, BASF increased the prices of BDO and its derivatives prices by USD 337/MT in North America region.
Asia
Demand for Butanediol (BDO) from its downstream derivatives sector remained high, though the production activities were comparatively low. During Chinese lunar holidays, BDO production across the country either hit low levels or were completely shut. Hence after lunar year prices of BDO surged exceptionally and floated from USD 2500/MT to USD 3375/MT within two weeks during February. Meanwhile in India, demand from paints and coating was deemed high while the shortage in domestic supply pushed downstream manufacturers to import. Moreover, record breaking hike in freight prices marked further rise in BDO prices across the region making them double from their previous values.
Europe
During Q1 2021 global market witnessed an extreme shortage of Butanediol (BDO) and its derivative chemicals, and Europe did experience the same. Heavy shortage of BDO, high demand from downstream sectors and halted imports activities caused BDO prices to rise drastically. BASF announced an increment in BDO and its derivative prices by USD 960/MT during March in European region. Meanwhile in Germany, price of 99% BDO hovered around USD 2255/MT during March.
For the Quarter Ending September 2020
North America
BDO players reported upside potential looking at the buoyant demand and sufficient supply in the region. Buyers agreed that since the product availability has reduced compared to Q2 levels, prices have reported a marginal uptick. Demand stayed way below the last year’s levels, pressuring the overall margins that have long stayed unfavorable due to mulling sluggishness over the automotive sector. Traders anticipate that BDO supply is likely to stay intact despite the news of Lycra’s Texas plant turning non-operational by the year end creating a buzz in the regional market. However, players sense that imports from Asia should be available to bridge any demand-supply gaps in the near-to-long term.
Asia
During Q3, BDO supply across Asia was stable after maintenance turnarounds ended in China. However, comparatively reduced run rates maintained the overall supply tightness. BDO prices witnessed an increment in September after persistent stability in July and August on the back of tight supply and robust demand. Cargoes in China were heard trading at around USD 1150/tonne in early August. Disruption in logistics in the Xinjiang region, which accounts for more than 40% of China’s total BDO capacity, continued to hamper supply from late July to August. The news of closure of BASF Idemitsu Co. Ltd.’s (BIC) facility at Chiba, Japan in Dec. 2020 further pressured the supply side. Producer’s margins took a big leap after the three major downstream sectors - polybutylene terephthalate (PBT), polytetramethylene ether glycol (PTMEG) and gamma-butyrolactone (GBL) showed volume growth. Q3 end with optimism that the demand is expected to continue improving in the fourth quarter, as restocking of end-products, particularly in Asia and Europe is likely to boost the consumption of BDO.
Europe
BDO supply remained tight in Q3 due to production outages heard at a leading producer’s facility during September backed by lesser imports from Asia. Market sources were pointing at the considerable increases in spot pricing due to the changing demand fundamentals. Demand started gaining momentum after August due to raised sentiments from the downstream polybutylene terephthalate (PBT) manufacturers who further reported greater enquiries by the automotive producers. Regional demand for PBT shot up in Q3 with a producer reporting 45% increase in demand in September on month-on-month basis. Resumption in downstream operations triggered active restocking during September resulting in greater need for BDO derivatives. Players, however maintained a cautious over the influence of demand fundamentals and prevailing supply constraints, thereby maintaining the price range around USD 2015/tonne in the final weeks of September.
