For the Quarter Ending December 2024
North America
The North American Butanediol (BDO) market demonstrated an inclining price trend throughout Q4 2024, supported by robust demand and market dynamics. Strong downstream consumption from sectors like polyurethane (PU), polybutylene terephthalate (PBT), and tetrahydrofuran (THF), along with inventory replenishment efforts after destocking phases, significantly contributed to price increases during the first half of the quarter. Supply-side challenges, such as logistical disruptions due to port congestion and labor strikes, further bolstered price levels. Rising raw material and energy costs also elevated production expenses, adding upward pressure to prices.
By late November, logistics began stabilizing, and supply chains operated more efficiently. However, demand moderated slightly in December due to seasonal slowdowns and cautious purchasing behavior from downstream industries. Despite these late-quarter adjustments, consistent demand from key sectors and economic resilience helped maintain the overall upward price trajectory. BDO prices in North America closed Q4 at a higher level compared to the start of the quarter, reflecting strong market fundamentals and heightened production and logistical costs earlier in the period.
The quarter-on-quarter change of -4% highlights a significant rebound in prices within a short timeframe. As Q4 draws to a close, the latest price stands at USD 1774/MT for 1,4 Butanediol DEL Texas in the USA, signaling a strong upward trajectory in pricing trends.
APAC
The Butanediol (BDO) market in the Asia-Pacific (APAC) region exhibited a mixed trend during Q4 2024, with an incline in the first half followed by a decline in the latter half. Early in the quarter, prices increased due to robust demand from downstream industries such as polyurethane (PU), polybutylene terephthalate (PBT), and tetrahydrofuran (THF). This surge was driven by inventory replenishment efforts post-destocking and heightened production activity ahead of the Lunar New Year. Temporary supply constraints, including planned maintenance shutdowns, added to the upward pressure on prices. Logistical challenges, such as port congestion and equipment shortages, further complicated supply chain dynamics, supporting price increases.
However, the trend shifted in the second half of the quarter, as seasonal slowdowns in industrial activity and reduced consumption in key sectors, including construction and automotive, dampened demand. Additionally, increased production capacity and stable raw material availability led to market oversupply, driving prices downward. These factors, combined with economic uncertainties and cautious purchasing behavior.
China witnessed the most significant price changes, with a quarter-on-quarter decline of 4% recorded for 2024. Thus, resulted in a decline in BDO prices by the end of Q4 2024, closing at USD 1114/MT FOB Qingdao.
Europe
During Q4 2024, the Butanediol (BDO) market in Germany demonstrated distinct price trends. In the first half of the quarter, prices remained stable, supported by balanced supply-demand dynamics and steady downstream activity from industries such as polyurethane (PU) and tetrahydrofuran (THF). Consistent domestic production levels and effective inventory management by both producers and distributors contributed to this stability. Despite external pressures, such as fluctuations in crude oil prices and ongoing port congestion, market equilibrium was maintained.
However, as the quarter progressed, prices began to decline due to a combination of seasonal factors and economic challenges. A slowdown in downstream industries, including automotive and construction, coupled with reduced activity in sectors like spandex and polyurethane resins, weakened overall demand. The rise in domestic production capacities and inventory adjustments further contributed to a market surplus, amplifying downward pressure on prices. Persistent port congestion in Northern Europe, particularly in Hamburg, led to logistical delays, exacerbating supply chain inefficiencies. By the end of the quarter, the German BDO market faced declining prices driven by reduced demand, increased supply, and broader economic concerns.
Germany, experiencing the no major fluctuations, saw 0% change from the previous quarter in 2024. The quarter-ending price for 1,4-Butanediol FD Karlsruhe in Germany was USD 1658/MT. Overall, Q4 2024 witnessed a steady decline in BDO prices in Germany, reflecting reduced demand, oversupply, and broader economic challenges.
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.
