For the Quarter Ending December 2024
North America
The North American Butyric Acid market experienced fluctuating price movements during Q4 of 2024, with prices initially declining by approximately 1.7%, then recovering by about 1.2%, before falling again by 2.5%.
At the beginning of Q4, the price rise in Butyric Acid was largely attributed to reduced domestic demand, with continued weakness in the chemical manufacturing industry. U.S. suppliers largely worked with existing inventory during the hurricane season, which lasted until November 2024. However, as the hurricane season ended, demand conditions improved in late November, and export conditions also showed signs of recovery, with multiple reports of low-loading railcars, which helped keep the market steady.
By mid-quarter, export conditions turned bearish again due to the strike between ILA and USMX, leading to disruptions in port operations. As the year drew to a close, destocking activities took over, with suppliers focusing on inventory reduction. Despite this, demand conditions remained unfavorable, especially in the animal feed industry, which faced a downturn and reduced procurement activities during the North American festive holidays.
Europe
The European Butyric Acid market witnessed a depreciation of approximately 7% during Q4 of 2024. For most of the quarter, the prices of Butyric Acid remained stable, driven by strikes and disruptions in the feedstock Propylene market. Suppliers maintained moderate activity across the region; however, increments in lead times for deliveries persisted due to disruptions in rail freight, which also drove up logistics costs.
Towards the end of the year, suppliers primarily focused on destocking their inventories, moving them in bulk. This resulted in ample supplies in the market. With the arbitrage window largely closed, supply remained abundant with no significant disruptions, continuing to be the dominant factor behind the bearish price trends.
Demand conditions remained unfavorable throughout the quarter. The initial months witnessed a downturn in the primary chemical intermediate sector as manufacturing activities faced retrenchment. Additionally, unfavorable demand conditions were observed in the animal feed sector, further contributing to the weak market performance.
APAC
The Chinese Butyric Acid market experienced varied conditions during Q4 2024. Prices remained unchanged during the initial month of the quarter, displayed a 1% increment mid-quarter, and subsequently depreciated by approximately 7.5% as destocking activities gained momentum.
Demand conditions fluctuated throughout the period, with the animal feed industry witnessing largely subdued demand and only moderate improvements. Economic stimuli announced by Chinese authorities yielded underwhelming results, with many market participants reporting that these measures had yet to translate into tangible transactions.
Midway through the quarter, prices temporarily rose due to supply tightness and increases in feedstock Propylene prices, prompting sellers to raise their quotations. However, towards the end of the year, widespread destocking activities became prevalent. Export conditions turned unfavorable due to seasonal typhoons impacting key Butyric Acid importing markets in Southeast Asia. This led to inventory accumulation at Chinese ports, adding further downward pressure on prices.
For the Quarter Ending September 2024
North America
In Q3 2024, Butyric Acid prices in North America saw a significant rise, particularly in the USA, which led these price shifts. The market experienced a positive sentiment due to several factors. Supply constraints from low inventories and reduced production played a crucial role in driving prices higher.
Additionally, disruptions in feedstock Propylene supplies tightened the market further. Increased demand from the animal feed and food flavoring industries also contributed to the price escalation, as restocking efforts intensified with the festive season approaching. However, a strike by the International Longshoreman Association (ILA) at the end of September 2024 led to inventory build-ups at ports, creating unfavourable export conditions.
In the USA, Butyric Acid prices increased by 2% from the previous quarter, although there was a 3% decline compared to the same quarter last year. Despite this, the market demonstrated resilience, with prices consistently rising—showing a 6% increase between the first and second halves of the quarter. The quarter ended with Butyric Acid priced at USD 1,350/MT FOB Houston, reflecting the overall bullish sentiment in the market.
APAC
In Q3 2024, the Butyric Acid market in the APAC region faced a significant decline in prices, primarily driven by a combination of factors. China emerged as the focal point of these price changes, with the market experiencing notable downward pressure. Key contributors to this trend included subdued demand in critical sectors such as animal fodder and chemical intermediates, alongside unfavourable export conditions that further exacerbated the situation. The prevailing bearish sentiment in the market was compounded by stable prices of feedstock Propylene, which helped maintain steady production costs despite the low demand environment. In China, prices plummeted by -13% compared to the same quarter last year, with a recorded -7% decrease from the previous quarter. The second half of Q3 also reflected this trend, with a further -2% decline compared to the first half of the quarter, underscoring the consistent downward trajectory. By the end of the quarter, the price for Butyric Acid FOB Shanghai settled at USD 1270 per metric ton, highlighting the negative pricing environment prevailing in the region. This ongoing decline raises concerns for producers, who may need to adapt to shifting market dynamics moving forward.
Europe
In Q3 2024, the European Butyric Acid market experienced a notable decline in prices, influenced by several critical factors. Prices dropped by 3% compared to the same quarter last year and also fell by 3% from the previous quarter, highlighting a sustained downward trend. The decline was consistent, with a 1% decrease noted between the first and second halves of the quarter, reflecting ongoing market challenges. Despite maintenance periods at various U.S. feedstock Propylene facilities in August and September, which temporarily reduced Butyric Acid production, the market shifted to a bearish outlook by mid-September as these facilities resumed operations, improving production conditions. This influx of supply contributed to the downward pressure on prices. In France, where the most significant price changes were observed, subdued demand from the manufacturing sector and reduced production costs further influenced the overall European trend. By the end of the quarter, the price for Butyric Acid FD Le Havre in France settled at USD 1,770 per metric ton. This figure underscores the downward pricing trajectory throughout Q3 2024, signaling potential challenges ahead for producers as they navigate fluctuating demand and supply dynamics.
For the Quarter Ending June 2024
North America
During Q2 2024, the Butyric Acid market in North America maintained a stable pricing environment, largely influenced by a balanced gap between demand and supply. The quarter was characterized by several significant factors that contributed to this stability. Limited inquiries from the downstream animal feed industry, combined with a stable supply of feedstock Propylene, played a crucial role in keeping prices steady. Despite occasional disruptions in manufacturing activities caused by severe weather conditions, the overall supply chain remained resilient, ensuring a consistent flow of Butyric Acid.
In the USA, which experienced the most notable price changes, the market trends reflected stability. The price of Butyric Acid exhibited minimal fluctuations, with no significant difference between the first and second half of the quarter. This stability can be attributed to moderate demand from the animal feed sector, offset by robust demand from the food and flavouring industries. Seasonal factors such as the peak summer season did not markedly impact prices, indicating a balanced market environment.
Compared to Q2 2023, the price of Butyric Acid decreased by 20%, highlighting a substantial year-over-year decline. This reduction can be linked to subdued demand and improved supply conditions. Additionally, the prices observed a 6% decline from the previous quarter in 2024, further emphasizing the trend of gradual price reduction.
However, throughout Q2 2024, the pricing environment remained stable, culminating in a quarter-ending price of USD 1200/MT FOB Houston. Overall, Q2 2024's Butyric Acid market in North America demonstrated a stable sentiment. The consistent balance between supply and demand, coupled with moderate demand conditions and resilient supply chains, fostered a stable pricing environment, reflecting a neutral outlook for stakeholders in the industry.
APAC
The second quarter of 2024 witnessed a significant downturn in Butyric Acid prices throughout the Asia-Pacific (APAC) region, influenced by several critical factors. Weak demand from the animal fodder sector, exacerbated by seasonal declines in pork consumption during peak summer months, heavily impacted market dynamics. Moreover, logistical disruptions such as port congestions and delayed shipments worsened the supply-demand imbalance, leading to increased inventory levels. High freight charges across Asia further compounded the downward pressure on prices, making the importation of Butyric Acid costlier. China, experiencing the most pronounced price fluctuations, saw an overall bearish trend. Declining PMI figures in the manufacturing sector reflected soft demand from chemical intermediates. Additionally, global oversupply of Ethylene affected Propylene availability and subsequently influenced Butyric Acid pricing. Seasonal factors were also pivotal, with reduced pork consumption during peak summer reducing the demand for Butyric Acid in animal feed applications. Comparing Q2 2024 to the same period last year, prices declined by 4%, highlighting sustained negative market sentiment. From the previous quarter in 2024, prices dropped even more sharply by 6%, indicating worsening bearish conditions. Within the quarter, a consistent downward trend was evident with a 4% reduction between the first and second halves. As of the quarter's conclusion, Butyric Acid was priced at USD 1320/MT FOB Shanghai, signaling a continuation of the adverse pricing environment. Overall, the Butyric Acid market in the APAC region during Q2 2024 faced predominantly negative conditions driven by weak demand and logistical challenges.
Europe
In Q2 2024, the Butyric Acid market in Europe faced a substantial decline in prices, influenced by several impactful factors. The resumption of production at OQ Chemicals' facilities alleviated previous supply shortages, exerting downward pressure on prices. This increased availability of Butyric Acid was amplified by the reopening of LyondellBasell’s steam cracker, improving Propylene feedstock supply and lowering production costs further. Concurrently, a bearish sentiment persisted in the manufacturing sector, characterized by ongoing weaknesses in order books, which dampened demand for Butyric Acid and reinforced the downward pricing trend. France experienced notable price volatility, primarily driven by improved supply conditions and cautious market sentiments anticipating further price decreases. Seasonal variations, including reduced activity in the chemical intermediate sector, also contributed to this trend. The correlation between increased supply and reduced demand was evident, with prices declining by 7% between the first and second halves of the quarter. Compared to Q2 2023, prices decreased by 1%, while the decline from the previous quarter in 2024 was 3%. Ending the quarter, Butyric Acid was priced at USD 1770/MT FD Le Havre in France, highlighting a consistently significant negative pricing environment throughout Q2 2024. This period marked a significant downturn driven by heightened supply and subdued demand, shaping an unfavourable pricing landscape for Butyric Acid across France and Europe.
For the Quarter Ending March 2024
North America
The North American Butyric Acid market witnessed a depreciation of approximately 7% despite prices of feedstock Propylene (Refinery Grade) witnessing stability during the opening quarter of 2024.
The slump in the prices of the product was only observed during the initial month of 2024, where prices of the product recorded a 6% decline. The remainder of the quarter witnessed a stable market situation. Moreover, the post-festive dullness also prompted destocking activities which further improved supply conditions. The decline in the prices of the product is further attributed to the persisting drought conditions at the Panama Canal which prevented the suppliers from exporting to the international market and eventually led to stockpiling of the product.
Prices of feedstock Propylene (Refinery Grade) also failed to provide any support to the US Butyric Acid prices during this time frame. Moreover, demand conditions after the post Easter festival were sluggish with excess inventories being present and demand from the animal fodder industry did not show an improvement.
Asia
During the initial quarter of this year, the Asian Butyric Acid market experienced a decline in prices of about 5%, despite fluctuations being witnessed in the prices of feedstock Propylene (Chemical Grade). The Asian market was primarily driven by stockpiling of inventories due to challenging conditions in major ports across East Asia and disruptions at key waterways, hindering Asian suppliers from exporting cargo to merchants in North America and Europe. Additionally, the end of the Chinese Lunar New Year festivities led to reduced purchasing activities in downstream FMCG sectors and prompted destocking activities amongst suppliers. This consequently improved supply conditions and resulted in an oversupplied market situation. Moreover, restocking efforts were sluggish, with Asian suppliers showing reluctance to replenish their inventories, and procurements were made only need on basis. Also, adverse weather conditions in East China slowed product circulation, leading to transportation and logistics constraints. Delayed departures from the port of Shanghai, where operations were disrupted by rains in early March 2024, also contributed to the sluggish circulation of the product.
Europe
The European Butyric Acid market witnessed major appreciation in the prices of Butyric Acid during the opening quarter of 2024. Prices of Butyric Acid were recorded to have inflated by approximately 9% during this timeframe. The primary reasons considered for the increments in the prices of the product are attributed to the prevailing scarcity of feedstock Propylene and the scarcity of the product. The low availability of the feedstock Propylene was attributed to the turnaround of major Propylene plants across the exporting US market due to challenging weather conditions and elevated freight charges, resulting in expensive imports of the feedstock in the European market. This heightened production costs. Also, the shortage in the supplies of the product is attributed to the force majeure declared by OQ Chemicals at its Oberhausen site in Germany, which further increased the prices of the product. The demand conditions, however, did show some improvement during the last month of this quarter due to the prevailing Easter season which increased transactions in the downstream FMCG sector. This consequently prompted the prices of the product to witness a substantial increase.
