For the Quarter Ending September 2024
North America
Throughout Q3 2024, the pricing of Iso Butyric Acid in North America remained stable, reflecting a balanced market sentiment. The quarter witnessed a significant influence on market prices due to weak demand from various industries, including food processing, chemicals, and animal feed. Factors such as moderate supply levels, subdued downstream activity, and uncertainties in the economy played a crucial role in maintaining price stability. Additionally, reduced orders from overseas markets due to high freight rates further muted the demand for product.
In the USA, which experienced the most price changes, the market trends were consistent with the overall region. However, compared to the previous quarter in 2024, there was a slight increase of 1%, demonstrating a marginal shift in pricing dynamics. Notably, the price remained constant between the first and second half of the quarter, further emphasizing the stable pricing environment.
As Q3 came to a close, the latest price for Iso Butyric Acid in the USA stood at USD 1230/MT FOB Houston, highlighting the continued stability in pricing trends.
APAC
Iso Butyric Acid pricing in the APAC region during Q3 2024 has been marked by a consistent downward trend, influenced by various significant factors. The market has experienced declining prices mainly due to weak demand from downstream industries such as food processing and flavoring sectors. This subdued demand has been further exacerbated by elevated raw material costs, impacting the overall pricing dynamics. China, in particular, has witnessed the most significant price changes, reflecting the overall trend in the region. Moreover, there was a noticeable increase from the previous quarter in 2024, with a 4% rise. The second half of the quarter recorded a substantial decrease of 6% in prices, indicating a sharp decline in market conditions. The latest quarter-ending price for Iso Butyric Acid FOB Shanghai in China stood at USD 1390/MT, underscoring the prevailing negative pricing environment in the region. This quarter has been characterized by a challenging market landscape, with prices consistently on a downward trajectory.
Europe
In Q3 2024, the Iso Butyric Acid market in Europe saw a notable decline in prices, with Germany being particularly affected by this downward trend. Several significant factors contributed to the decrease in market prices during this quarter. A disconnect between supply and demand created a bearish sentiment, exacerbated by supply chain disruptions, including port strikes that led to increased stockpiles of Iso Butyric Acid. Germany experienced the most significant price changes during this period, reflecting the broader challenges faced by the market. A seasonal slowdown impacted key sectors, such as chemical solvents, animal feed, and food processing manufacturing, all of which are major consumers of Iso butyric acid. This reduced demand, combined with logistical disruptions and heightened inventory levels, resulted in a consistent decline in prices throughout the quarter. Despite a slight decline in the previous quarter, the overall trend remained negative, highlighting the difficult pricing environment for iso butyric acid. Manufacturers and suppliers are now navigating these challenges as they seek to stabilize their operations amid ongoing market volatility and shifting demand dynamics.
For the Quarter Ending June 2024
North America
During Q2 2024, the Iso Butyric Acid market in North America maintained a stable pricing environment, largely due to a balanced demand and supply dynamic. This stability was influenced by several significant factors throughout the quarter. One key aspect was the limited inquiries from the downstream animal feed industry, which, coupled with a stable supply of Propylene feedstock, played a crucial role in maintaining steady prices.
Despite occasional disruptions in manufacturing activities due to severe weather conditions, the overall supply chain demonstrated resilience, ensuring a consistent flow of Iso Butyric Acid. In the USA, which experienced the most notable price changes, market trends reflected stability, with Iso Butyric Acid prices exhibiting minimal fluctuations and 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, which was effectively balanced by robust demand from the food and flavouring industries. Additionally, seasonal factors, such as the peak summer season, did not markedly impact prices, indicating a balanced market environment. Overall, the Iso Butyric Acid market in North America during Q2 2024 was characterized by stable pricing, supported by a resilient supply chain and balanced demand across key industries.
APAC
The second quarter of 2024 has been marked by a rising price trend for Iso Butyric Acid in the APAC region, primarily influenced by significant cost pressures from feedstock materials and logistical challenges. The quarter saw increased prices due to the heightened cost of raw materials, particularly Propylene, whose price surged by 3%, exerting upward pressure on production costs. Additionally, the limited availability of propane loading from the Middle East Gulf, coupled with delays in deliveries from the US, further tightened supply chains, exacerbating the price hike. These factors, alongside increased transportation costs, have collectively driven the upward trend.
Focusing on China, which witnessed the most substantial price variations, the market experienced notable volatility. Seasonality played a role, with demand fluctuations corresponding to the Chinese domestic market's cyclical nature. The quarter's overall trend reflected a cautious yet steady price increase. Despite a 0% change compared to the same quarter last year, the price from the previous quarter in 2024 saw a slight decline of -1%. However, a comparison between the first and second halves of the quarter revealed a 1% increase, indicating a gradual recovery and stabilization in prices.
The latest quarter-ending price for Iso Butyric Acid stood at USD 1595/MT FOB Shanghai. This consistent rise in prices underscores a generally positive pricing environment, driven by robust market fundamentals and strategic supply management.
Europe
In Q2 2024, the Iso Butyric Acid market in Europe experienced a significant decline in prices, driven by several key factors. One of the primary influences was the resumption of production at OQ Chemicals' facilities, which alleviated the previous supply shortages. This increase in availability exerted downward pressure on Iso Butyric Acid prices. Additionally, the reopening of LyondellBasell’s steam cracker improved the supply of Propylene feedstock, further lowering production costs and contributing to the price decline. The manufacturing sector's persistent bearish sentiment also played a crucial role in the price reduction. Weak order books and a general lack of demand for Iso Butyric Acid dampened market activity, reinforcing the downward trend in prices. France, in particular, saw notable price volatility. This was primarily due to improved supply conditions and market participants' cautious sentiments, which anticipated further price decreases. Seasonal variations further influenced the market, with reduced activity in the chemical intermediate sector during certain periods contributing to the overall price decline. These combined factors—improved supply from key producers, lower production costs, weak demand in the manufacturing sector, and seasonal effects—created a challenging environment for the Iso Butyric Acid market in Europe, leading to a substantial decline in prices during the second quarter of 2024.
For the Quarter Ending March 2024
North America
Iso Butyric Acid pricing in the North America region for Q1 2024 has witnessed an overall increasing trend. Several significant factors have influenced market prices during this quarter. Firstly, there has been a rise in market purchasing activities and an increase in bids among enterprises, leading to an elevation in the price trend.
Additionally, rising labor costs, global inflation, and increasing energy bills have prompted price adjustments for pigments and colorants by Sun Chemical, further contributing to the upward price trend. Nevertheless, the market fundamentals remain weak when compared with the previous quarter. In the USA specifically, the price of Iso Butyric Acid has seen the maximum price changes. The overall trend has been positive, with prices increasing steadily. Comparing to the same quarter last year, there has been a significant decrease of 29% in prices.
However, there has been a recovery in prices compared to the previous quarter in 2024, with a recorded increase of 4%. Moreover, there was a notable price difference between the first and second half of the quarter, with a 9% increase. With Q1 2024 ending price in the USA stands at USD 1215/MT of Iso Butyric Acid FOB Houston. Overall, the pricing environment for Iso Butyric Acid in the North America region in Q1 2024 has been positive, with increasing prices and bullish market sentiment.
APAC
The first quarter of 2024 has been characterized by increasing prices in the Iso Butyric Acid market in the APAC region. Several factors have influenced market prices during this period. In general, demand for Iso Butyric Acid has been strong, driven by various industries such as food and beverage, fragrance, and pharmaceuticals. This increased demand has put upward pressure on prices. Additionally, there have been supply constraints, with limited availability of Iso Butyric Acid in the market. This has further contributed to the price increase. China, in particular, has seen significant price changes in the Iso Butyric Acid market. The overall trend in China has been upward, with prices rising steadily throughout the quarter. This can be attributed to strong demand from various industries, coupled with limited supply. In terms of seasonality, the first quarter of the year is typically a period of increased demand for Iso Butyric Acid, as industries ramp up production after the holiday season. This has also contributed to the price increase. Compared to the same quarter last year, prices have increased by 6%. This indicates a positive pricing environment for Iso Butyric Acid. Furthermore, prices in the first quarter of 2024 have increased by 9% compared to the previous quarter, indicating a continued upward trend. In terms of price dynamics within the quarter, prices in the second half of the quarter have increased by 5% compared to the first half. This suggests a strengthening market and further supports the overall increasing sentiment.
Europe
The European market for Iso-Butyric Acid underwent notable fluctuations, largely influenced by ample supply and weak demand dynamics. Despite an uptick in feedstock propylene prices, the market remained sluggish due to limited trades and feeble demand from downstream sectors, particularly the personal care and pharmaceutical industries. Consequently, supply levels slightly exceeded demand, further dampening market sentiment. Notably, trades from Germany, a key supplier, to other European regions saw a reduction, attributed to sufficient product availability and deterred demand within the region. The downward trend in Iso-Butyric Acid prices persisted as more suppliers disclosed their fresh offers and encountered lower bids from regular customers. German Iso-Butyric Acid prices reached a low point as deals reflected the subdued demand prevailing in the market. Interestingly, despite the surge in oil prices, the impact on market sentiment remained minimal, with demand concerns taking precedence. Overall, the European Iso-Butyric Acid market faced challenges stemming from imbalanced supply-demand dynamics, contributing to a downward pressure on prices across the region.
For the Quarter Ending December 2023
North America
In Q4 2023, the price trend of Iso-butyric Acid in the North American market witnessed a decline in the price trend mainly attributed by lackluster trading fundamentals and limited demand fundamentals for the fresh stocks. The cost of Iso-Butyric Acid in the USA remains feeble in the locale because of a higher production rate among the significant manufacturers bringing about oversupplies.
Frail market elements and low offering for new bidding in cargoes brought about a cost pattern. Demand of Iso-Butyric Acid from downstream Pharma and solvent market confined because of low interest from purchaser's end. Because of the fall in adhesive industry, the Iso-Butyric Acid costs decelerated with production cuts among the local producers.
In Dec 2024, the price trend of Iso-Butyric Acid in the USA declined to USD 1190/ton FOB Houston. Iso-Butyric Acid prices fell with the succeeding quarter due to delayed offtakes, which were mostly attributed to sluggish buying attitudes mixed with low trading volume in the face of ample product supply. The price drop is placing pressure on chemical companies, affecting revenue and sales of downstream enterprises.
Asia Pacific
In the Asia Pacific region, the price trend of Iso-Butyric Acid maintained its price gain with the succeeding months. When compared with the previous quarter, the Iso-Butyric Acid prices ended on a bullish note with uptick in the market purchases in the region. With the start of the quarter, the price of Iso-Butyric acid rose amid the rise in crude oil prices caused by geopolitical tensions between Israel and Palestine, as did the cost of manufacture. Iso-Butyric Acid prices began to rise as the region's demand fundamentals improved. Due to limited product availability in the region, prices elevated as regional suppliers boosted their offers to regional suppliers. However, towards the end of Q4 2023, the prices declined in the wake of adequate inventory level and fading demand fundamentals from the buyers for the bulk purchases. In China, the price of Iso-Butyric Acid was USD 1508/ton FOB Shanghai during Nov 2023. Towards the end of the quarter, even as supplies were abundant, the demand for iso-butyric acid in China's marketplaces has continued to decline, seemingly due to a lack of trust on the side of purchasers.
Europe
The North American region saw a decline in the prices of Iso Butyric Acid in Q4 2023 due to several factors affecting the market. Firstly, there was a bearish market sentiment with high supply and low demand fundamentals. Secondly, weak trading activities and subdued year-end requirements further contributed to the price decline. Lastly, the oversupply of the product and weak spot price conversations impacted the market negatively. The downstream solvent market's need for the product was low, and the demand from the agriculture intermediate and dyes market has dropped, influencing the price trend. : With the feeble cost support from the feedstock Isobutyraldehyde the production cost of Iso-Butyric Acid slumped in the European market. Market trading activities remain plunged from the downstream enterprises as well and the suppliers remain hesitant to increase the prices in the domestic market. Due to weak regional demand, product reserves were satisfactory on the supply side. Limited Iso Butyric Acid trade within the European region put manufacturers under even more pressure due to impacted margins and declining profits.
For the Quarter Ending September 2023
North America
In Q3 2023, the market fundamentals for Iso-Butyric Acid in the USA declined in successive months in the wake of sluggish purchases and feeble market fundamentals. Product consumption of Iso-Butyric acid in the United States has declined, and the lackluster demand for new stock provides only flimsy support to the price trend. Exports of Iso-Butyric Acid premium cargo to the North American market fell due to a drop in market activity. Due to an oversupply of product supply and a feeble demand in the region, the price displayed a downward adjustment. Bidding for new stock remains limited, and suppliers acquire the goods as needed. According to traders, the demand for Iso Butyric acid has been declining, which has impacted market dynamics, as has uncertainty in regional economic growth. Iso-butyric acid prices have dropped in the trade market due to delayed market offtakes. Purchase activity is restricted as purchasers buy equities based on their requirements and expect more declines. In the USA, the price of Iso-Butyric Acid during Sept 2023, the price of Iso-Butyric Acid in the USA declined to USD 1444/ton FOB Houston.
Asia Pacific
With the quarter ending in Sept 2023, the price of Iso-Butyric Acid in China witnessed a bearish market trend in the wake of sluggish trading activities and product oversupplies, affecting the price trend. According to traders, the demand for Iso Butyric acid declined, which has impacted market dynamics and created uncertainty in regional economic growth. Iso-butyric acid prices have dropped in the trade market due to delayed market offtakes. Purchase activity is restricted as purchasers buy equities based on their requirements and low market fundamentals. The dilemma among sellers who aim to destock, with special offers for additional volumes being heard well below the spot market level. Suppliers who export are under more visible pressure as demand across global markets struggles to pick up along with low market fundamentals amid sluggish purchases. In Aug 2023, the price of Iso-butyric Acid in China declined to USD 1385/ton FOB Shanghai. The flow of fresh offers was still somewhat slow as producers seemed to be circumventing the traditional reseller channels and selling more sports directly.
Europe
In Q3 2023, the price of Pyridine in the European market remains slumped in the face of feeble market purchases and limited demand fundamentals from the downstream market. With declining exports from Germany to other European regions, the market trading activities hampered this quarter. Spot prices declined, and suppliers were purchasing the product on a need-to basis. Prices are still on the lower end, and with limited trading activities, the prices declined further. The demand for Iso-Butyric Acid from the downstream disinfectant industry started to decline in the wake of slow market offtakes and limited trading activities. Demand uncertainty prevailed in Germany, which hampered the trading dynamics. In the European market, trading fundamentals slumped due to weak demand and adequate inventories among the enterprises. Local inventories rose with adequate inventory levels among the enterprises along with limited market fundamentals. Sufficient prompt supply provided relaxation to the price, and suppliers revised the prices for the domestic market. Weak product demand in the European market from the downstream Agrochemical and dyes intermediate resulted in high inventories among the downstream enterprises.
For the Quarter Ending June 2023
North America
In Q2 2023, the purchasing fundamentals of Iso-Butyric Acid surged with the gradual consumption of product inventories from the downstream ventures. The Iso butyric Acid prices showed a upward price momentum in the US market, as the market players approached an optimistic trading atmosphere. The Iso buytric Acid prices were impacted by supply tightness as enterprises reduced production run rates in the face of high input cost pressure. Meanwhile, a recovery in the buying appetite led to an elevation in downstream demand and contributed further to the price hike in the US market. In June 2023, the price of Iso-butyric Acid in the USA surged to USD 1822/ton FOB Houston. The demand for Iso-Butyric Acid from the downstream Pharma market likewise stays up trended by increasing product request and insufficient stocks to fulfill the buyer's need. Notwithstanding, in the North American market, the costs displayed bullish pattern with healthy spot discussions with the increase in trading volumes from the USA to the overseas market.
Asia Pacific
In this quarter, the price of Iso-Butyric Acid in the Asia-Pacific region showcased a bullish price trend in the wake of high purchasing activities and increase in trading volume. In China, due to force majeure in the Luxi Chemicals in May 2023, the supply/demand fundamentals disrupted which resulted in such a price trend. The production rate among the significant production units ruptured and the demand for the product surged from the domestic and overseas market. Low inventories and limited supply in the region forced the producers to revise the product’s prices. Regarding raw material butyraldehyde, production companies tend to increase their ex-factory quotations. Currently driven by Iso-Butyric Acid futures, production companies’ installations are overhauled, bidding remains high, and downstream demand has rebounded. In May 2023, the price of Iso-Butyric Acid in China surged to USD 1630/ton FOB Shanghai. The change in the supply and demand dynamics led to massive demand in the market, leading to a price rise. The demand for Iso-Butyric Acid from the downstream Pharma and Dyes intermediate industries remains elevated this quarter, with demand exceeding the supply.
Europe
In Q2 2023, the price of Iso-Butyric Acid in Europe surged this quarter with the increase in market fundamentals and rapid consumption of product inventories. Strong market sentiments along with insufficient product availability resulted in such a bullish price trajectory. Rising interest from downstream Agricultural intermediate and utilization of Iso-Butyric Acid in pharmaceuticals chemicals had also provide cost support. With the healthy demand for the fresh stocks, significant manufacturing units managed to sustain the profit margin and sales among the ventures. However, with the vigorous interest from European suppliers, the costs of Iso-Butyric Acid continued to soar, driving the operating margin rapidly upwards. The demand for Iso-butyric Acid from the downstream Agriculture intermediates and dyes intermediate surged and the market fundamentals improved along with cost support. Downstream sectors are developing with consistent flooding requests, which expand in utilization from significant manufacturers. Negotiations among the traders for Iso-Butyric Acid remain challenging as spot prices are increasing amid strong demand and low inventories.
For the Quarter Ending March 2023
North America
The price of Iso Butyric acid has fluctuated in the quarter ending March 2023. In February 2023, the price of the commodity showed a decline due to reduced demand from cosmetics manufacturers for downstream processing. However, in March 2023, the price increased from the previous months of the quarter due to an improvement in the demand from paints and cosmetics companies and a steep rise in the upstream crude oil costs. As of the last recorded price, Iso Butyric Acid was being traded for USD 1,742 per MT on FOB – Houston basis in March 2023, indicating a bullish market outlook with moderate supply and slow revival in demand as cosmetics and paint manufacturers showed moderate interest in acquiring the product throughout the first quarter of 2023.
APAC
Iso Butyric Acid prices have shown mixed market sentiments in the quarter ending March 2023. In March 2023, the demand for the commodity increased by a nominal rate impacting prices. The product was being traded at USD 1469 per MT on FOB – Shanghai basis in March 2023. However, in the subsequent month, there was no change in the price of Iso Butyric Acid, as the demand-supply ratio remained stable. The market situation was considered bearish, with modest supplies and manufacturers of paint and cosmetics showing average interest in the procurement of the product. In January 2023, Isobutyric acid prices experienced a significant decline due to diminished demand from downstream companies and the lowered prices of upstream crude oil at the start of the year.
Europe
Iso Butyric Acid prices in the European market remained low during the first quarter of 2023, mainly due to stable production costs in exporting nations. However, the shipment delays caused by industrial strikes in Europe and a decrease in raw material propylene prices in producing nations, and reduced demand from consumers impacted the pricing dynamics of the product. To increase raw material sales and reduce input costs, producers lowered their prices. Meanwhile, the demand for Iso Butyric Acid from downstream paints and cosmetics was moderate in the first quarter of 2023. European enterprises faced increased uncertainty as OPEC announced a crude oil production cut at the end of March 2023, which may affect discussions about Iso Butyric Acid in April.
For the Quarter Ending December 2022
North America
The price of Isobutyric Acid also decreased in the United States. This product's prices have dropped primarily as a result of lower costs for upstream crude oil and lower prices for propylene, the base material used in its production. Prices of isobutyric acid also dropped as a result of lower demand from paint and personal care product manufacturers. There were no noticeable plant closures, and the constant interest of the downstream dyeing and food additive industries eased the cost pressure on product prices.
APAC
According to ChemAnalyst's analyses, the price of Isobutyric Acid decreased in the fourth quarter of 2022 as well. This product's market in China fell in response to several factors. Although the prolongation of COVID-19 curbs hampered production activities in both upstream and downstream companies, there were no significant plant closures, and the events in the upstream crude oil market played a significant role in determining prices. When it comes to India, the price of this product has been lowered as a result of the product's ample inventories and the moderate demand for it. So, suppliers were making procurement orders for this product in average volumes.
Europe
The markets for Isobutyric Acid in Europe also performed poorly in the fourth quarter. A number of factors have significantly impacted the demand for petrochemicals. According to ChemAnalyst, consumer concerns about inflation, the ongoing conflict between Russia and Ukraine, and an approaching energy crisis were affecting petrochemical demand. Additionally, customers found it modest to pass on ongoing cost increases due to supply chain delays. As a result, there were no plant closures, and stocks in inventories in idle volume were recorded.
For the Quarter Ending September 2022
North America
Iso Butyric Acid prices dropped down in the USA during the third quarter of 2022. The decline in the prices of this product was primarily because of the reduction in prices of propylene, the base material used in making this product, as well as a decline in the costs of upstream crude oil. In addition to these, Iso Butyric Acid prices fell due to lower demand from manufacturers of paint and personal care products. The downstream dyeing and food additive industries showed constant interest, easing the cost pressure on product prices. So, this product's market in the USA was concluded at USD 2,180 per MT on FOB – Houston basis.
APAC
Iso Butyric Acid witnessed a further price reduction during the third quarter of 2022 in the Asian market. The market for this product was dull in China due to various issues. The key factors that made the prices decline were the implementation of the zero covid policy by the government and the energy crisis, which forced both upstream as well as downstream firms to halt or bring down their production rates completely. When it comes to India, though there was stability in the demand-supply ratio of this product, the prices were dropping down because of the cut in prices of feedstock Propylene and upstream crude oil. So, in this quarter, the market of Iso Butyric Acid in India closed at USD 3039 per MT on a spot Ex-Mumbai basis.
Europe
European Iso Butyric acid markets were also dull in the third quarter of 2022. The demand for petrochemicals has been severely impacted by a variety of factors. Market participants indicated that petrochemical demand was being impacted by consumer concerns about inflation, the ongoing Russia – Ukraine conflict, and an impending energy crisis. Additionally, supply chain delays make it difficult for customers to pass on ongoing cost increases. So, Iso Butyric acid closed its market this quarter at USD 1,830 per MT on FOB – Hamburg basis.
For the Quarter Ending June 2022
North America
Costs for crude oil and propylene, both required to make this product, are falling, resulting in a drop in the price of Iso Butyric Acid in North America at the end of the quarter. Likewise, Isobutyric acid's price decreased because of a decline in demand from paint and personal care product manufacturers. The second quarter saw the product's merits be stable throughout the regional market. Steady demand from downstream dyeing and food additives sectors relieved cost pressure from the product's prices. Varying prices of upstream feedstock Propylene and 2-Methyl Propane due to the fluctuations in the global petrochemicals market affected the downstream market sentiments.
Asia
The prices of Iso Butyric Acid fell in the Asian market during the second quarter of 2022 in Asia with a quarterly decline of 2.9% in India, as recorded by Chem Analyst pricing team data. The downstream products showed mixed fluctuations, but the changes were insignificant, and the overall situation was stable. It was also challenging to improve the propylene market because start-up and sales were in a steady state, demand stimulation was insufficient, and the propylene market was challenging to improve. As a result of the weakening of international crude oil, the benefits of the lower costs are limited, and the propane market also deteriorated along with it. Furthermore, due to the off-season factor, the terminal demand was limited, and the market trading atmosphere was hostile, so manufacturers primarily sold at a profit-cutting price.
Europe
The price levels of Iso Butyric Acid surpassed the pandemic's lowest point in European Union during the second quarter of 2022, which prompts worries about a significant economic downturn. Due to a variety of factors, the demand for petrochemicals has been under a great deal of pressure. But the most recent data support that consumer apprehension over inflation, conflict, and an impending energy crisis is additional vital factors reducing demand for petrochemicals. In addition, purchasers find it difficult to pass on ongoing cost increases due to supply chain delays. Buyers are destocking in the current market scenario, perhaps because those quantities accrued because of fear when the conflict began.
