For the Quarter Ending September 2024
North America
In Q3 2024, the North American isobutanol market faced significant challenges, leading to a notable decline in prices driven by a confluence of adverse factors. The market was primarily impacted by weakened demand from downstream industries, which failed to recover amid seasonal fluctuations, despite one of the majore producers of Iso-Butnaol namely Eastman Chemicals increasing the prices by USD 110/mt from August 1, 2024 as per the release dated July 17, 2024. Despite some production disruptions due to shutdowns in feedstock propylene, the overall demand remained lackluster, contributing to a bearish pricing environment. During this quarter, unfavorable export conditions further exacerbated the situation. Strikes organized by the International Longshoremen's Association disrupted shipping and logistics, complicating the already strained supply chain.
Additionally, the ongoing hurricane season posed further production challenges, affecting operations in critical manufacturing areas across the USA. As a result, the pricing landscape for isobutanol experienced a consistent downward trajectory, particularly in the United States, which recorded the most significant price fluctuations. Prices plummeted by 12% compared to the same period last year, reflecting a stark contraction in market value. This decline was not just a year-over-year trend; the quarter saw a 3% decrease from the previous quarter of 2024, underscoring the persistent pressure on prices.
Moreover, a comparison of pricing from the first half of the quarter to the latter revealed an additional 2% drop, further indicating the ongoing bearish sentiment. By the end of the quarter, the price of isobutanol settled at USD 2,120/MT DDP Texas, a figure that encapsulates the overall negative sentiment prevailing in the market
APAC
In the third quarter of 2024, the Asian isobutanol market experienced a pronounced bearish trend, with prices plummeting by over 23% by the quarter's end. This decline was primarily driven by an oversupplied market that continued to exert downward pressure on prices. Formosa Plastics Corporation, a key producer in the region, maintained its Mai Liao facility’s run rates at 100% capacity, producing 240,000 metric tons of isobutanol. Similarly, Luxi Chemical, with a production capacity of 300,000 metric tons per year, also kept its run rate steady at 100% throughout the quarter, contributing to an overall supply glut. This situation resulted in historically low prices for isobutanol across the Asian market. Despite moderate availability of feedstock propylene—which was expected to impact production—the continued high supply overwhelmed demand. Furthermore, a downturn in the construction sector limited demand from the paints and coatings industries, further exacerbating the price decline. The combination of abundant supply and subdued demand created significant challenges for the isobutanol market in the region.
Europe
In Q3 2024, the European isobutanol market experienced a downward trend in prices, with a notable 7% decline compared to the same quarter last year. This downturn was largely attributed to weakened demand from downstream industries, particularly paints and coatings, coupled with an oversupply of propylene that helped reduce production costs. Despite the challenges, the market showed signs of normalization with the return of OQ Chemicals to production early in the quarter. However, in August 2024, disruptions arose as many propylene plants temporarily shut down for maintenance during the summer holidays. This included Shell Chemicals declaring a force majeure at its production site in Moerdijk, Netherlands, which resulted in decreased isobutanol output across Europe. To counteract the continuous bearish market conditions, OQ Chemicals implemented a price increase of $110/MT in the European market. By September 2024, most propylene plants resumed operations, along with the arrival of propylene cargoes from the Middle East and Asia, leading to a supply glut that further intensified the bearish market sentiment. Germany, in particular, experienced significant price fluctuations, with a 3% decrease from the previous quarter and a 1% drop between the first and second halves of the quarter. While some stability returned, overall market conditions remained negative, influenced by subdued construction activity and poor performance in the housing sector. By the end of the quarter, the price of isobutanol in Germany was recorded at $1,160/MT FD Hamburg, reflecting ongoing downward pressure in the pricing environment. The quarter highlighted the ongoing struggle to balance supply and demand amid challenging market conditions.
For the Quarter Ending June 2024
North America
The second quarter of 2024 proved dynamic for the North American Iso Butanol market, shaped by pivotal factors. A key driver of price increases was the rising cost of feedstock Propylene, exacerbated by increased power consumption and logistical challenges. These factors, coupled with weather disruptions and unexpected plant shutdowns, significantly raised production costs. Expansion in the manufacturing sector and higher prices for consumer goods further contributed to the upward pricing trend.
In the USA, where price fluctuations were most pronounced, the Iso Butanol market showed a clear upward trajectory. Seasonal demand spikes during peak construction months played a crucial role. Despite stable global sentiment, regulatory impacts on mortgage rates and construction standards also drove price appreciation. Year-over-year comparisons revealed a notable 24% decrease from the previous year, offset by a modest 2% increase from the preceding quarter of 2024, indicating a recovery phase within the fiscal period. Comparing the first to the second half of the quarter, prices saw a consistent 2% increment, signalling a strengthening market.
Closing the quarter at USD 2195 per metric ton DDP Texas underscored a generally positive pricing environment. These developments highlight the complex dynamics of supply chain challenges, regulatory influences, and seasonal demand, shaping a stable yet cautiously optimistic outlook for the market.
APAC
In the second quarter of 2024, Iso-Butanol prices in the APAC region surged significantly, driven by a complex interplay of factors. Key among these were substantial supply constraints exacerbated by maintenance turnarounds at Propylene and oxo-alcohol plants. These planned shutdowns sharply curtailed production, tightening supply chains across the region. Adding to the supply pressure, escalating freight costs due to port congestions further inflated import expenses, compounding the overall market strain. Simultaneously, robust demand from downstream industries, particularly in plastics and solvents, bolstered market sentiment. This heightened demand was particularly notable in Japan, where Iso-Butanol prices experienced pronounced volatility. Quarter-over-quarter, prices spiked by 6%, underscoring persistent imbalances between supply and demand dynamics. The seasonal surge in construction activities during the summer months further stimulated demand, contrasting sharply with the market's condition a year earlier when prices had plummeted by 14%. This decline was reflective of the economic downturn induced by the pandemic. Looking closely at the quarterly performance, Iso-Butanol prices saw a modest 1% increase from the first half to the second half of the quarter. The quarter concluded with Iso-Butanol priced at USD 1208 per metric ton CFR Osaka, encapsulating the upward trajectory fuelled by constrained supplies and resilient demand from key industries. Overall, the second quarter of 2024 highlighted a robust pricing environment for Iso-Butanol in APAC, characterized by supply chain challenges and strong industrial demand. These factors collectively underscored a bullish outlook for the market, signalling sustained upward momentum in Iso-Butanol prices.
Europe
Europe's Iso Butanol market faced significant challenges in the second quarter of 2024, marked by a persistent decline in prices. This downturn was primarily influenced by several critical factors. Foremost among them was the resumption of production by OQ Chemicals, a leading European manufacturer, which alleviated previous supply constraints and boosted market availability of Iso Butanol. Additionally, improved logistics in the Middle East and Asia, alongside reduced freight costs, facilitated smoother imports, further bolstering supply levels. Despite these supply improvements, demand from key sectors such as plasticizers and construction remained subdued throughout the quarter. The construction industry showed sluggish activity with declining new orders, contributing to the overall bearish sentiment in the market. Across the broader manufacturing sector, while production stabilized somewhat, the demand for chemicals like Iso Butanol failed to gain momentum. Germany, experiencing the most pronounced price fluctuations, saw a clear downward trend. Iso Butanol prices in Germany dropped by 24% compared to the previous year, reflecting substantial market pressures. Quarter-on-quarter, prices declined by 5%, continuing the negative trajectory. Comparing the first and second halves of the quarter, there was a 2% price decrease, underscoring the sustained downward movement. Closing the quarter, Iso Butanol was priced at USD 1240 per metric ton FD Hamburg, highlighting the challenging pricing environment. In summary, the Iso Butanol market in Europe during Q2 2024 faced adverse conditions driven by improved supply dynamics amid weak demand, notably in Germany where pricing trends were most impacted.
For the Quarter Ending March 2024
North America
The North American Iso Butanol market witnessed a largely bearish market situation during the first quarter of 2024. Overall prices of the product witnessed a depreciation of approximately 15% across the US during the first quarter of 2024.
The slump in the prices Iso-Butanol across the USAs attributed to subdued construction activities across Southeast Asia, due to seasonal factors and the property sector being largely in crisis. Moreover, disruptions at key shipping routes such as the persistent crisis at the Red Sea and the drought conditions at the Panama Canal eventually led to stockpiling of the product across the North American ports.
Despite one of the leading producers of oxo-alcohols across the US market, namely Eastman Chemicals, announcing a price hike, the effects did not translate into the export prices of Iso-Butanol during this timeframe. Overall, during this quarter, export conditions for US Iso Butanol market remained highly unfavorable due to seasonal winter season where construction activities across the Southeast Asian market remained subdued, and the festive Chinese Lunar New Year holidays due to which consumption of the product also remained moderate
Asia
During the first quarter of 2024 the Asian Iso-Butanol market was primarily driven by increments in the prices of feedstock Propylene and a deficit of inventories entering the East Asian market. However, demand conditions from the construction sector continued to remain highly unfavorable as the construction sector continued to underperform. Increments in the prices were also attributed to price hikes initiated by various oxo-alcohol manufacturers, namely OQ Chemicals and Eastman Chemicals. With the Asian Iso-Butanol market being largely an import driven market therefore the prices hikes initiated by the global oxo-alcohols players directly translated into the prices of the product. Moreover, shipping disruptions in the key waterways for example drought conditions at Panama Canal and the crisis at the Red Sea also played a pivotal role, in the arrival of expensive imports into the Asian market along the supply disruptions caused by the Noto Earthquake. Demand conditions, however, remained highly unfavorable, as evidenced by declining housing starts and public construction orders.
Europe
The European Iso-butanol market witnessed an increase of around 30% in the prices during the first quarter of 2024 due to heightened production costs, a scarcity of feedstock Propylene, and the price hikes introduced by major oxo-alcohol producers. A scarcity of feedstock Propylene was observed across the European market due to feedstock Propylene plants being shut across the exporting US market which led to heightened production costs. Moreover, OQ Chemicals a major oxo-alcohol producer had declared a force majeure at its Oberhausen site in Germany, further leading to a shortage in the supplies of the product. The demand for the product remained moderate across the Eurozone and mainly existed from the Dutch, Belgian, and British markets where construction activities improved, which led to moderate demand for the product. However, across the domestic German market, demand conditions continued to remain unfavorable as the construction sector continued to remain in retrenchment for the fifteenth consecutive month. All segments of the construction sector namely, residential construction, commercial construction, and civil engineering witnessed significant contraction towards the end of March 2024.
For the Quarter Ending December 2023
North America
The Iso Butanol market in North America, particularly in the USA, faced considerable challenges during the fourth quarter of 2023. The market witnessed a persistent bearish trend throughout this period, primarily influenced by diminished demand from downstream sectors such as PVC, paints, and coatings.
Additionally, a decrease in feedstock propylene prices further contributed to the overall downward trajectory. In response to these market conditions, manufacturers adjusted production levels to align with the subdued demand.
The situation was compounded by unplanned shutdowns of feedstock propylene plants, initiated by Dow Chemical and BASF Total Energies Petrochemicals in early September. These events had a notable impact on the availability of raw materials. However, there were no reported plant shutdowns during the fourth quarter.
Despite the challenging market conditions in the United States for Iso-butanol, OQ Chemicals, a prominent player in the oxo-alcohol market, initiated a global price increase of 2%. Towards the end of December, destocking activities predominated in the US Iso-butanol market, evidenced by a significant price decline of approximately 10%. This occurred despite modest demand from the importing Mexican market, where the construction sector demonstrated resilience. The quarter concluded with the latest price of Iso Butanol FOB Louisiana in the USA standing at USD 2043/MT.
APAC
The Iso-butanol market in the APAC region faced significant challenges throughout the fourth quarter of 2023. The Asian market experienced an influx of cost-effective imports from the European market, despite an initial bullish market situation for feedstock Propylene, which saw prices rise by more than 24%, subsequently depreciating by 8% towards the end of December 2023. Iso-butanol prices across the Asian market, according to assessments, witnessed a substantial decline of approximately 16%. This decline was attributed to the continuous inflow of inexpensive imports from the European market, persisting alongside moderate demand from the construction sector's paint and coating industry. The oversupply situation was particularly pronounced as the European construction industry continued to underperform throughout the final quarter of 2024. The commencement of the fourth quarter proved challenging for the Japanese market, with manufacturing activities contracting and resulting in low demand. The situation demonstrated marginal improvement in November 2023 when OQ Chemical, a leading oxo-alcohol manufacturer, opted to increase Iso-butanol prices by approximately 2%, indicating a mild upward trend. However, by December 2023, the demand side deteriorated further, marked by depreciations of 10% and 6% in feedstock Propylene and upstream Crude Oil prices, respectively. These reductions significantly impacted production costs amid moderate demand from the construction sector, leading to an oversupplied market. The fluctuating Japanese Yen also contributed to the unfavorable market conditions for the product. Iso-butanol prices at the close of the last quarter of 2024 were assessed at USD 1067/MT CFR Osaka.
Europe
The European Iso-butanol market encountered ongoing challenges during the fourth quarter, characterized by subdued demand in both international exports and the domestic construction industry. Iso-butanol prices in the European market remained stable in October but registered a net depreciation of approximately 20% overall, notwithstanding fluctuations in feedstock Propylene prices throughout the fourth quarter of 2023. The European Iso-butanol market was significantly influenced by the lackluster performance of the construction industry across the Eurozone and sluggish demand from East Asian markets. The construction industry in the Eurozone continued its retrenchment for the thirteenth consecutive month, with notable contractions observed across all three segments. Housebuilding emerged as the weakest performing segment, accompanied by significant downturns in civil engineering and commercial building activities. Sub-contractor availability eased for the eighth consecutive month due to reduced workloads, and job shedding persisted throughout the fourth quarter of 2023. Pessimistic investment sentiments and unfavorable demand conditions further alleviated pressure on the downstream paint and coating sector of the construction industry, leading to an oversupplied market. Despite the prevailing low demand, OQ Chemicals, a leading manufacturer of oxo-alcohols, opted to increase Iso-butanol quotations in November 2023 by approximately USD 80/MT, providing some reinforcement. This adjustment was reflected in prices, showing an increment of approximately 1.5%. Iso-butanol prices towards the end of the fourth quarter were assessed at USD 1100/MT FD Hamburg.
For the Quarter Ending September 2023
North America
Contrary to the second quarter, the prices of iso-butanol admitted a decent decline during the third quarter within the USA market under the influence of muted demand from the downstream construction industry. Comparatively, in July, a marginal downtrend was observed by the market players of oxo-alcohols, while a significant drop in the pricing dynamics of iso-butanol was encountered by US traders in the following months. Therefore, to remain competitive in the market, US traders decrease their posted prices. Moreover, the feedstock propylene prices also supported the production values of iso-butanol during August. Despite a marginal improvement in the US economic activities, the prices of iso-butanol in the USA continued its downtrend in September on the back of low production costs. Month-by-month, the demand for iso-butanol from the downstream paints and coating industry has been deteriorating. Moreover, the prices of feedstock Propylene have also declined within this timeframe, which supported the price trend to finally settle at USD 2100/MT iso-butanol FOB Louisiana (USA) during September 2023.
Asia
The overall upward trend was observed by the iso-butanol Chinese market during the third quarter under the influence of the tight spot of raw material. However, compared to July, the following months have admitted a significant rise amid the cost support from the feedstock propylene prices. As per the data, Anqing Shuguang in Anhui, China, put their iso-butanol plant on Maintenance Turnaround, having a capacity of 120,000 MT/year from mid-July 2023. Moreover, the feedstock propylene prices further supported the price trend as the production cost of the product slightly surged during this timeframe. In late July, the iso-butanol market in Shandong, China, experienced a period of tight supply. This was due to a few factors, including the repair of some production units. However, the market gradually began to recover as upstream and downstream players replenished their inventories. Surprisingly, iso-butanol prices have risen to their highest values ever since the previous year and even escalated the values of n-butanol in the Chinese market to settle within the hike of 8.3% to settle at 1207 USD/tonne Iso-Butanol EX Qingdao China during August whose market sentiments were reflected in September as well.
Europe
Previous market trend has been followed by German iso-butanol players during this quarter. A continuous downtrend in the market prices has been observed by the traders of oxo-alcohols in Europe during the third quarter under the influence of prevailing market sentiments. Several enterprises within Europe adjusted their offered quotations negatively for oxo-alcohols to remain competitive in the international market. As per the data released by Eurostat, European industrial activities were observed to be falling during the previous month; Industrial Production output (Euro Area) remained -1.1% (August 2023) in comparison to the previous month. Henceforth, the decline in factory activity is a negative sign for the production level, which further supported the downtrend in the prices of iso-butanol. Moreover, due to the subdued demand for oxo-alcohols from the downstream paints and coating industries, few participants considered early shutdowns to stem supply. Therefore, BP in Gelsenkirchen-Horst, Germany, put their feedstock Propylene unit in maintenance turnaround during early September, which drove the prices of iso-butanol to settle at USD 1350/MT FD Hamburg (Germany), September 2023.
For the Quarter Ending June 2023
North America
During the second quarter, the Iso-butanol market in the US remained weak. A significant drop in the Iso-butanol pricing trend was observed during April amid diminishing demand from downstream coating industries in the US. As per the data, the Industrial Production Total Index fell from 103.1 (April) to 103 (May), causing trading activities to be low. After increased demands for premium cargo exports of Iso-butanol from the USA to the South American region during March, the Iso-butanol market was on the lower end. Additionally, excessive stockpiles of products and deteriorating market fundamentals led the trading activity of Iso-butanol in the US market to remain low. Due to the lesser exports from the US to Canada and the South American region, traders anticipated stockpiling as a precautionary action, resulting in ample inventories to meet the weak demand for the downstream industry. Meanwhile, marginal fluctuations during May were observed due to the volatile market of feedstock propylene. Additionally, trading activities remained minimal, and the manufacturing rate was lowered, contributing towards the lower price trend of Iso-butanol.
Asia
During the second quarter, the Iso-butanol market in Asia remained marginally elevated compared to the first quarter due to the upliftment in economic activities. An overall monthly upward trend has been observed during April, followed by the first quarter amidst strong product demand from the downstream Paint and coating industry. As per the National Bureau of Statistics (NBS) data, the value-added industry growth rate of China rose from 3.9% (March) to 5.6% (April). In China, with the increasing trading activity and limited supply, major Iso-butanol producers were struggling to meet the requirements of consumers prompted by the rising feedstock propylene market, with an increase of 2.37% from the previous month. Concurrently, this has led the traders to increase the cost to sustain profit margins. However, certain European Iso-butanol commodities had revised their shipment contract prices for the Asian market, remain the inflows weak. Meanwhile, supplies remained ample enough to cater to the depressed demand after the impending threat of lockdown had influenced the prices of Iso-butanol CFR Qingdao to decline during June.
Europe
A marginal surge in pricing trend has been observed during April for Iso-butanol amid limited regional product availability. Due to the growing demand from end-user Paint and coating industries, increased exports from Germany along with an increase in spot trading activities were observed. As per the data, Production in Industry-Manufacturing in France rose from 99.5 (March) to 100.1 (April), indicating improved economic activities. Moreover, the market sentiments were rugged due to the lower inventories at ports, which impacted the producers to trade iso-butanol at a higher rate. In the European market, purchasing activities remained robust enough to put weight on producers who were struggling to meet the requirement of consumers. However, in order to balance out the profit margin, weak trading market sentiments influenced the prices to display the downtrend of Iso-butanol prices in the European market was observed during June. Moreover, lower demand in downstream paint and coating industries with low purchasing activities resulted in weak cost support than in previous months.
For the Quarter Ending March 2023
North America
This quarter, the trading fundamentals of Iso-Butanol in the North American region improved with high market fundamentals and low product inventories among the significant producers. In March 2023, the price of Iso-Butanol in the US surged to USD 2486/ton FOB Louisiana. Iso-Butanol export offers traded higher this month, supported by a strong purchasing urge from the downstream enterprises to cope with the industrial demand. Exports of Iso Butanol from the USA to the South American region increased with the elevated premium cargo offers. Downstream Paint and coating industries remain bullish, with insufficient inventories among the ports. Significant producers raised their offers for the domestic and overseas markets as demand exceeded the supply.
Asia Pacific
In Q1 2023, the Iso-Butanol market in the Asia-Pacific region elevated with the continuous utilization of inventories and strong product demand among enterprises. The demand for Iso-Butanol from the downstream Paint and coating industries remains steady with continuous gain in trading fundamentals. Imports of Iso-butanol from Europe to the Asian market were tepid, but the producers raised their offers to sustain their profit margin and revenue. During Feb 2023, the price of Iso-Butanol in China surged to USD 1095/ton Spot Ex-Qingdao. Towards the end of the quarter, market participants cited lower offers to the downstream Paint and coating industries, and sufficient stocks limited the trading fundamentals.
Europe
In the European market, the Iso-Butanol prices slumped with limited demand and cautious stance from downstream Paint and coating ventures. An increase in inventories and adequate supply in the market declined the price trend. Trading activities also remain feeble as the market participants sought offers discounts on bulk purchases. In March 2023, the price of Iso-Butanol in Germany declined to USD 1837/ton FD Hamburg. Limited bids and offers of Iso-Butanol from the downstream enterprises due to oversupplies hampered the market trading activities in the European market. Exports from Germany to the other European market also declined, with shrinking profit margins and sales among the significant producers.
For the Quarter Ending December 2022
North America
In the USA, the price of Iso-Butanol showcased a feeble price trend with declining spot prices. Export prices of Iso-Butanol from the US to the South American region declined this month with limited trading in the regional market. A potential pressure of an increasing number of cargoes this quarter forced the producers to provide discounts on the prices to clear their inventories. In Dec, the price of Iso-Butanol in the USA declined to USD 2135/ton FOB Ohio. Iso-Butanol demand declined from downstream Paint and Coating markets, allowing sufficient inventories to accumulate and lower bidding. The loss in benchmark futures, driven by the weak feedstock Propylene market and rising export in overseas supply, has caused sufficient inventories in the region.
Asia Pacific
Asia Pacific market traced the Northward price trajectory and gradual increase in trading offtakes resulting in a strong price trend. With the rising demand for Iso Butanol from the downstream construction industry, the prices gained a stance with strong market fundamentals. Such a price trend is observed with continuous consumption of inventories among enterprises and high purchasing activity. Imports in China from Germany surged with a revision in the price trend for Chinese suppliers. In Dec, the price of Iso-Butanol in China surged to USD 950/ton CFR Qingdao. The downstream of iso-butanol mainly consumed the raw materials in the early inventory, and the overall market demand improved.
Europe
In the European market, the market fundamentals of Iso-Butanol remain fragile, with limited trading activities and continuous increments in inventories. The price trend of Iso-Butanol declined this quarter when compared with the previous one. Recession fear and uncertain economies in Europe also affected the price trend of oxo alcohol. Exports of Iso-Butanol from Germany to the overseas market declined, and major producers cut production rates to avoid further stockpiling. In Dec, the price of Iso-Butanol in Germany declined to USD 1954/ton FD Hamburg. Demand for Iso-Butanol declined from the downstream Paint and coating market, augmented sufficient inventories, and lower bidding.
For the Quarter Ending September 2022
North America
In Q3 2022, the trading activity of Iso Butanol among the suppliers increased compared with the previous quarter. With rising energy and utility costs. The feedstock Propylene prices also elevated in the region, affecting the product's price dynamics. Towards the end of the quarter, the price of Iso Butanol in the US surged to USD 2565/ton FOB Louisiana. The price hike in Iso-Butanol caused several disruptions in downstream Paint industries. Significant US multinational companies increased their additives prices for paint and coating industries. Exports of Iso butanol from the US to other North American regions' elevated price trend helped the producers sustain their profit margins.
Asia Pacific
This quarter, the price of Iso Butanol faced the South in the wake of weak purchasing activity and lower product demand in the region. At the start of the quarter, the price of Iso Butanol in China declined to USD 1271/ton CFR Qingdao. The decrease in currency rates of the domestic Yuan compared to the dollar negatively impacted the overall values. At the same time, the product offtakes remained moderate from the domestic market due to the lack of demand in the downstream phthalate industries. It reduced the downstream cost support on the product values, and producers decreased their market price quotations.
Europe
In the European region, the price of Iso Butanol declined in the first two months of this quarter, prompted by weak market offtakes and lower bidding for fresh stocks. In August, the market of Iso Butanol declined to its lowest with the price trend of USD 1925/ton FD Hamburg. However, in Sept 2022, the prices gained a stance in the wake of low inventories and limited supply in the region, forcing the producers to revise the product's prices. Regarding existing stocks, some production companies tend to increase their ex-factory quotations. Driven by Iso Butanol futures, production companies' installations overhauled, and higher bidding, prices elevated in the European region.
For the Quarter Ending June 2022
North America
Following the previous quarter's trend, the price trend of Iso Butanol remained strong, and the values upsurged consistently, indicating a significant quarterly increment of 22.4% in the values from Q1 of 2022 in the North American region. After the global inflation due to sanctions on Russia and supply chain disruption, crude oil prices shifted globally. Fluctuations in upstream Naphtha and feed propylene prices due to the volatile Crude oil market upsurged the product prices substantially by almost 13% during the first half of the Q2. The price trend persisted with marginal upward inclinations till the end of Q2 due to consistent demand for Iso Butanol in the downstream phthalate and paint industry for the construction and automotive sectors.
Asia
In the Asian region, the price trend of Iso Butanol remained uncertain due to volatility in upstream Naphtha and crude oil prices, which impacted the feed propylene prices in the region. In India, an increase in Russian Crude oil imports at low prices and decreased feed and upstream costs plummeted the quarterly prices of Iso Butanol by 5.5%. While, in China, frequent lockdown and port congestion, along with the piled-up stock of inventories, caused uncertainty in market dynamics. Plus, an increase in freight and energy rates rose the price by 5.9% during Q2 of 2022 in China, while the demand for the material was stable in the downstream Dibutyl Phthalate manufacturer and paint industries.
Europe
The price movement of Iso Butanol shifted in the European region with some significant fluctuations during Q2 of 2022. Post a significant rise in feed propylene prices with an escalation in energy costs in the region post-global inflation, the price of Iso Butanol rose substantially by almost 26% in the first half of Q2. After that, the stable demand sentiments from the Dibutyl Phthalate and paint manufacturers decreased the product prices marginally during the mid-quarter. However, prices rose again towards the end of Q2 due to an increment in downward cost pressure caused by the region's rise in energy and fuel costs and an overall quarterly surge of 30.2% seen in the values.
For the Quarter Ending March 2022
North America
In North America, the price of Iso Butanol in the first half of Q1 2022 increased due to limited availability and low inventories. Towards the start of the month, the price of Iso Butanol was observed to be USD 1990/ton FOB Louisiana. But by the end, it was steadily due to weak demand from downstream markets such as areas like agriculture, auto products, and adhesives. Low import demands from Europe and Asia from the USA due to the Russia-Ukraine war due to oversupplies in the region have reduced Iso Butanol prices. Impact on supply because of low raw material costs and logistics problems across the region caused surging of prices in the first half of Q1 2022.
Asia Pacific
The prices of Oxo-alcohol Iso Butanol were following an upward trajectory in the Asian market due to rising raw materials cost which was the prime factor for steep escalation. The conflict between Russia and Ukraine led to increase in the price of upstream crude oil which directly affected the price of feedstock propylene and isobutyraldehyde. Despite the demand for the product from the downstream market which are maintaining overall stability, manufacturers heard raising their offers for local and international market in India and China. Traders revealed that prices increased to the upper end due to global price hikes. In China, the price of Iso Butanol towards the end of the month observed to be USD 1595/ton Spot Ex-Qingdao.
Europe
The trend for the price of Iso Butanol was spotted to be increasing and went up to USD 2025/ton FD Hamburg, due to surge in demand from the downstream paints and coatings sector as well as from fuels and fuel additives. Inflation pressure due to rising crude oil values have been pressurising global traders and convertors to raise their offers in order to sustain profitability. High demand from the downstream sector supported the price of Iso Butanol during the first half of 2022.
For the Quarter Ending December 2021
North America
Iso-Butanol prices maintained overall stability across USA market during this quarter. Key manufacturers heard revising their offers to sustain their profitability as input cost have increased exponentially for makers. During the month of November, Crude price fell sharply during Asian trading with ICE Brent future falling amid heightening concern of oversupply of crude oil and rising fears over COVID related uncertainties. As the upstream prices declined, the supply started exceeding the demand from the country’s paint manufacturers. Consequently, by the end of December month, prices showcased overall buoyancy compared to past few months. Thus. Iso Butanol price stood around USD 1963/MT FOB during December in USA.
Asia
Asian Oxo Alcohols makers have been witnessing demand dullness since a long time, where prices kept have been free falling consistently. Indian makers heard waiting to see improvement in demand from the domestic market, which happened during November post arrival of festive season in the country. However, prices remained dull despite improved offtakes from acrylate manufacturers of the country. Demand fundamentals for acrylates varied country over country in APAC region. South Korean demand for Acrylates remained buoyant compared to previous quarters, as import as well as domestic production improved effectively. Furthermore, Dual energy policy in China constrained domestic buyers from keeping their acrylates production on track, which reduce the overall demand for Oxo Alcohols in the market. Iso Butanol prices heard hovering around USD 1208/MT CFR During December.
Europe
European market kept on oscillating throughout the fourth quarter of 2021, on the back of pandemic related restrictions and sudden change in energy prices. During the first month of the quarter, manufacturers were cautious about high input cost, as natural gas prices were soaring all across European region. However, wavering demand from the regional market coupled with negligible enquiries from Asia pushed down the price of Iso Butanol in Europe during November, which later showcased marginal improvement by the end of December.
For the Quarter Ending September 2021
North America
In the North American region, the supply of oxo-alcohols improved in the 3rd quarter after witnessing constrained supply fundamentals in the previous two quarters. Demand remained firm throughout Q3 where the paints and coating sector flourished as the US economy recovered after experiencing a significant decline in Q2. The downstream construction sector particularly residential buildings had been a key factor driving the demand for all oxo-alcohols in the region. Texas has been the critical hub for Iso Butanol, and it was severely impacted by the freeze fallout than other petrochemicals in Q3. Supply chains recovered significantly, however demand push sent the prices in upward momentum. Disruptions towards the end of the quarter impacted supply in a later stage as raw material costs increased drastically along with logistics problems across the region.
Asia
The Asian market witnessed a significant rise in the prices of Iso Butanol during the third quarter of 2021. In the Indian market, Iso Butanol gained stability in the 2nd quarter as the prices were already running very high. Traders revealed that prices were already floating at their peak due to global price hikes and they were expecting coolness at prices in this quarter. However, no drastic change or decline was observed for Iso Butanol, but traders are speculating on further reduction, which may help them to improve their profit margin. Iso Butanol prices skyrocketed from USD 1781/MT to USD 2220/MT from July to September in 2021.
Europe
The overall market outlook of Iso Butanol demonstrated an upward trend in the European region during Q3 2021. Supplies remained constrained in the 3rd quarter owing to unplanned turnarounds of some manufacturing units in Europe. Due to the supply restrictions, a European manufacturer of oxo intermediates and oxo derivatives declared force majeure for iso-Butanol and other products with immediate effect in September, which led to the increased prices of the product across the region. Demand for Iso Butanol from downstream paints and coatings sector remained firm in Q3.
For the Quarter Ending June 2021
North America
The North American market had firm demand for Iso Butanol (IBA) during Q2, backed by improved offtakes from the downstream sectors. Prolonged shortage of the feedstock Propylene led to an extreme rise in its prices during this quarter in USA. Due to this shortage, price of Iso butanol (IBA) rose effectively throughout the quarter, while gaining support from the downstream user segment. The downstream construction sector suddenly picked up the pace that increased the consumption of IBA from the paints and coatings sector. However, traders were struggling to procure cargoes from the domestic market, but due to lack of proper availability, prices gained an upward momentum. Thus, the price of Iso butanol were assessed around USD 2545/MT during end of June in USA.
Asia
Iso Butanol showcased firm sentiments during this quarter in Asia, backed by stable to firm demand from the downstream sector. The price increased significantly while the demand remained in a modest to stable range in the Asian market in the meantime. Majorly spill over effect was observed in the Indian Iso Butanol market, where the demand fluctuated in a narrow range due to second wave of pandemic, but the prices kept on rising due to the global price hike. However, in China, prices kept on rising due to firm domestic demand and soaring international prices. Thus, the overall Asian market witnessed an upward price movement with Iso Butanol prices in India hovering around USD 1639/MT during the last week of June.
Europe
Europe also experienced an upward price trend during this quarter backed by improving domestic market condition as an after effect of pandemic recovery. The construction sector was improving month over month, thereby supporting the demand for Iso Butanol from the paints and coatings sector. In addition, global price hike for Iso Butanol also affected the European market, as imported cargoes were getting expensive and soaring freight cost also exacerbated the overall price scenario.
For the Quarter Ending March 2021
North America
North America Petrochemical sector kneeled to its lowest level under the freezing storm, in February 2021. This rare climate calamity halted almost 80% of the total US output, and hence affected the prices across the region. Major petrochemical plants remained idled during this period, like OQ chemicals announced an abrupt shut down of their Iso Butanol plant with a capacity 240,000 MT per Year due to unfavourable weather conditions. Meanwhile, Iso Butanol prices by +USD 220.7 per MT across the region.
Asia
Asian market encountered critical shortage of Iso Butanol amidst high demand from domestic downstream chemicals manufacturers like resins, lacquer solvent etc. Global crisis of solvent and continuous gain in value by crude oil primarily affected the prices of Iso Butanol across the region. Prices of Iso Butanol in the Indian market rose by 48.23% from January to March 2021, while in the Chinese market prices rose by 77.78% within the quarter and settled down at USD 1600/MT till March end.
Europe
Europe faced high shortage of Iso Butanol amid sufficiently high demand from downstream sectors, which supported its prices during this timeframe. Lower trade activities across Asia and significantly increment in the Middle East crude oil prices significantly affected the domestic prices of Iso Butanol across the region. While the demand from lacquer solvent remained higher than expected due to ongoing global solvent crisis.
For the Quarter Ending September 2020
Asia
The Asian Iso Butanol sentiments took a driver’s seat in the third quarter as end use industries resumed production with few operating at their maximum capacities under hopes of recovering the loss incurred in the previous quarter due to the coronavirus contagion. Consistent revival in values of the upstream crude also contributed well towards uplifting the market fundamentals in the region. As several countries in Asia primarily cater to their domestic demands through imports, trade constraints from Europe resulted in supply shortage.
North America
The North American Iso Butanol market witnessed promising gains in the third quarter with revival in demand from rubber sector. However, the production cuts implemented in many petrochemical plants in the region due to the fear of Hurricane Laura which has dragged the export potential of the leading producers pushing their revenues lower in comparison to the previous quarter. Traders are buoyant over increased purchasing from the eastern countries in early October on stock piling of Iso Butanol to abate the supply shortage ahead of China’s National Day holiday in October.
Middle East
Import demand for the middle east petrochemicals largely improved in the third quarter with increased production from the end use industries on revival in market activities after coronavirus plateaued in majority of economies throughout the world. Firming values of upstream crude further provided support to margins of derivatives such as Iso Butanol following strong market dynamics in Asian and European countries. However, curtailed production due to maintenance outages in few of the plants exerted a downward pressure on the export revenues.
