For the Quarter Ending December 2024
North America
In the fourth quarter of 2024, N-Propanol prices in North America moderated, reflecting a balance between stable supply and more cautious demand from downstream industries. As the year came to a close, many sectors that rely on N-Propanol, such as pharmaceuticals, coatings, and personal care products, adopted a more conservative approach to inventory management in anticipation of the holiday season and New Year. While there was some seasonal demand in preparation for year-end sales, overall activity in these industries slowed, which contributed to a stabilization in prices.
New Year sales did not have a substantial impact on N-Propanol prices in the final quarter. Instead, businesses focused more on adjusting their stock levels rather than making significant purchases. This cautious approach to buying, combined with limited production increases, led to more moderate pricing throughout the period.
On the supply side, production levels remained stable, with both domestic manufacturers and international suppliers ensuring steady availability. The stable supply, along with reduced purchasing activity from downstream industries, helped keep prices relatively flat. As a result, N-Propanol prices in North America experienced a period of moderation in the fourth quarter of 2024, driven by steady supply and tempered demand from key sectors.
APAC
In the fourth quarter of 2024, N-Propanol prices in Asia showed a mixed trend, with notable regional variations. In China, N-Propanol prices increased in November, driven by a combination of rising demand from downstream industries and supply chain adjustments. The demand spike was particularly noticeable in the coatings, pharmaceuticals, and personal care sectors, which tend to experience increased activity before the New Year. The preparation for year-end sales and holiday demand led to more significant purchasing, contributing to the price increase in November.
On the other hand, South Korea saw a slight decrease in N-Propanol prices throughout the quarter. This trend was largely due to more subdued demand from key downstream industries, as many businesses focused on inventory management and reducing stockpiles in anticipation of slower activity during the New Year period. Additionally, some production slowdowns in sectors like automotive and consumer goods, which are significant consumers of N-Propanol, kept demand relatively stable but not high enough to support price hikes.
The supply side remained balanced, with steady production from local suppliers and continued imports meeting regional demand. Overall, while China saw an uptick in prices due to strong downstream activity in November, South Korea’s prices trended downward due to weaker demand, leading to a mixed pricing trend for N-Propanol in Asia during the fourth quarter of 2024.
Europe
In the fourth quarter of 2024, N-Propanol prices in Europe experienced a slight decrease, influenced by a mix of demand trends and supply conditions. As the year came to a close, many downstream industries, such as coatings, pharmaceuticals, and cosmetics, began to scale back production in preparation for the holiday season and New Year. This seasonal slowdown typically results in lower demand for raw materials like N-Propanol, contributing to a softening of prices.
New Year sales did not lead to significant changes in the N-Propanol market. While there was some increase in consumer demand for products like personal care items and cleaning agents, businesses in the downstream industries were more focused on managing inventory rather than making large purchases of raw materials. This cautious purchasing behavior kept demand for N-Propanol relatively stable, but not enough to push prices higher.
On the supply side, production levels in Europe remained steady, and imports from key global suppliers were consistent, ensuring a balanced market. The availability of N-Propanol was adequate to meet the reduced demand, preventing any significant price fluctuations. As a result, N-Propanol prices in Europe saw a slight decrease in the fourth quarter of 2024, driven by tempered demand from downstream industries and stable supply conditions.
For the Quarter Ending September 2024
North America
Throughout Q3 2024, n-Propanol prices in North America remained stable, reflecting a balanced market with moderate supply and subdued demand. This stability was influenced by several factors, including weak buying interest, lackluster demand from downstream industries, and slow trading activity. Existing stock levels were sufficient to meet domestic needs, leading businesses to adopt a cautious approach to inventory replenishment. Despite some improvements in the construction sector and other solvent-related industries, overall demand for n-Propanol remained muted.
These elements combined to create a consistent pricing environment, with prices holding steady despite the market’s challenges. As a result, companies were careful in their purchasing decisions, mirroring the cautious sentiment that dominated the region.
While certain sectors displayed signs of recovery, the broader outlook for n-Propanol demand continued to reflect a wait-and-see attitude among manufacturers and suppliers. This cautious approach contributed to the overall stability in pricing, as enterprises opted to proceed with restraint rather than engage in aggressive purchasing amid uncertainty in the market.
APAC
In Q3 2024, the APAC region witnessed a notable increase in n-Propanol prices, driven by a confluence of factors shaping market dynamics. Elevated demand from downstream industries, particularly in solvents and cosmetics, played a pivotal role in driving up prices. Additionally, supply constraints and logistical challenges, such as port congestion, contributed to the price surge. China, experiencing the most significant price changes, saw a steady uptrend in n-Propanol prices. At the end of August, the trading activity improved, and positive buying sentiments also contributed to upward trend. The overall trend in the region indicated a positive sentiment, with a 2% increase from the same quarter last year. Moreover, prices surged by 4% from the previous quarter in 2024, reflecting the growing market demand. A price comparison between the first and second half of the quarter revealed a 3% increase, showcasing the consistent upward trajectory. The quarter-ending price stood at USD 1140/MT of n-Propanol FOB-Qingdao in China, underscoring the prevailing bullish pricing environment in the APAC region.
Europe
In Q3 2024, n-Propanol prices in the European region experienced a notable decline due to several critical factors. The prevailing trend of decreasing prices was primarily influenced by rising global logistics costs. Disruptions in the Red Sea region significantly contributed to these increased expenses, as ongoing conflicts resulted in severe port congestion, equipment shortages, and higher operational costs. These logistical challenges created a ripple effect on supply chains, leading to delays and interruptions that amplified market volatility. With shipping routes becoming less reliable, the availability of n-Propanol was further constrained, complicating the pricing landscape.
Additionally, concerns over supply stability impacted market sentiment, contributing to price fluctuations. Manufacturers faced the challenge of navigating these complexities while managing their production schedules, which fostered an overall bearish outlook in the market. This combination of geopolitical factors and logistical disruptions ultimately led to a decrease in n-Propanol prices in Europe during this period, highlighting the intricate interdependencies within global supply chains.
For the Quarter Ending June 2024
North America
The second quarter of 2024 witnessed a notable rise in n-Propanol prices in the North American market. This increase was driven by supply constraints, caused by moderate to low manufacturing rates and intermittent labor shortages, which intensified the gap between demand and supply. Furthermore, strong performance in key downstream sectors, particularly paints and coatings, maintained the demand pressure on n-Propanol prices.
In the construction sector, demand for n-Propanol was bolstered by the robust activity that began with the Spring buying season. Construction projects nationwide saw a significant uptick, including rural highway repaving, freeway-style interchange construction, and safety enhancements aimed at addressing infrastructure needs and accommodating growing transportation demands. This surge in construction activity reflected efforts to meet increasing demands, maintain existing infrastructure, and expand transportation networks to support various modes of transportation.
Additionally, the hospitality sector showed positive signs, with the volume of hotel rooms under construction growing year-over-year for the first time since June 2023, indicating a gradual recovery. These factors collectively drove up the demand for n-Propanol, an essential component in construction paints and coatings.
APAC
The second quarter of 2024 has been marked by a noticeable upward trajectory in n-Propanol prices across the Asia-Pacific (APAC) region, driven primarily by a confluence of strategic market factors. The global rise in crude oil prices, coupled with increased upstream costs for key feedstock components like Ethylene and Propylene, has significantly influenced the market. Supply chain disruptions, particularly from Middle Eastern exporters, have exacerbated supply limitations, further escalating prices. Additionally, heightened freight charges and robust demand from the household, agrochemical, and personal care sectors have compounded the bullish trend. Inventory levels remained low against a backdrop of steady consumer demand, pushing suppliers to raise their quotations to match market dynamics.
In South Korea, the country experienced the most pronounced price changes in the region, showcasing a 20% increase compared to the same quarter last year, and an 11% rise from the previous quarter of 2024. Seasonal factors, such as increased cleaning agent consumption during hot months, combined with consistent industrial demand, have played pivotal roles. The first half of the quarter saw a 6% price hike compared to the latter half, underscoring the persistent pressure on supply in the face of unwavering demand. As a result, the quarter-ending price reached USD 1070/MT FOB-Busan, reflecting a consistently positive pricing environment. The overall sentiment remains bullish, driven by a robust interplay of supply constraints and demand surges, indicating a favorable pricing scenario for stakeholders.
Europe
In the second quarter of 2024, the n-Propanol market in Europe encountered a challenging environment, marked by a consistent decline in prices. Several key factors contributed to this downward trend, most notably the subdued demand from major end-user sectors such as construction and automotive. The construction industry faced a downturn due to economic and geopolitical uncertainties, high financing costs, and unfavorable weather conditions, leading to reduced demand for n-Propanol, which is essential in construction-related paints and coatings. Consequently, the decreased activity in the construction sector significantly impacted n-Propanol consumption. Similarly, the automotive sector experienced a decline, particularly in the sales of electric vehicles (EVs) and passenger cars. This slump was partly due to the withdrawal of government incentives for battery-powered electric vehicles, resulting in a noticeable decrease in new registrations. The reduction in demand for n-Propanol, crucial for the production of automotive coatings and related products, further compounded the challenges faced by the n-Propanol market.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, n-Propanol prices demonstrated an upward trend, with an increase from the previous quarter observed in the North American market. At the beginning of the quarter, prices rose as the availability of stocks was moderate to low in the market, and consumption improved after the New Year holidays. Simultaneously, supplies were limited from exporters as high energy costs and limited availability of feedstock Ethylene supplies in the producing country impacted production rates, heightened by the risk of supply chain disruptions amid geopolitical tensions and the Red Sea crisis.
During the mid-quarter, prices surged due to strong demand for n-Propanol in the international market, driven by increased demand in the Household & Personal Care sector. Meanwhile, production rates were hampered by the sluggish availability of feedstock Ethylene and Propylene supplies, compounded by limited access to upstream Crude Oil in the global market due to OPEC+ production cuts.
Towards the end of the first quarter of 2024, Global air cargo demand saw a consecutive rise, fueled by the growth of the e-commerce sector and disturbances in shipping routes, notably in the Red Sea region, causing fluctuations in air freight rates and supplies to the regional market. At the same time, cosmetics manufacturers showed strong demand for n-Propanol, prompting exporters to increase their quotations.
APAC
During the first quarter of 2024, the n-Propanol price trend showcased an upward trajectory in the Asian market, and prices increased by almost 3% from the previous quarter. Initially, prices surged as the orders remained strong from cleaning agent manufacturers due to increased stocking practices and consumption in the household sector before the celebration of the Lunar New Year in the region. Midway through the quarter, the availability of stocks was inadequate in the market. The Household & Personal Care sector saw a surge in demand amid the Seollal and Lunar New Year festivals in South Korea and China. Simultaneously, the festivals in significant consumer India kept the appetite high from the consumer end. Towards the quarter's end, regional buyers increased their orders due to steady demand from the household sector amid the observance of various festivals around the arrival of the spring season. Concurrently, product availability was moderately low due to weak production rates. At the same time, global air cargo demand experienced consecutive increases, driven by the expanding e-commerce sector and disruptions in shipping routes, particularly in the Red Sea region, leading to fluctuations in air freight rates and product supplies in the regional market. Consequently, n-propanol prices rose in the Asian market.
Europe
The n-Propanol price trend showcased a bullish movement in the European market during Q1 2024, and prices rose from the previous quarter. At the beginning of the quarter, the production rates were affected by high energy costs and weak availability of feedstock Ethylene supplies due to high risks of supply chain disruptions amid the geopolitical tensions and the Red Sea crisis. Simultaneously, orders were consistent from cleaning agent manufacturers due to increased stocking and consumption from the household sector during festivals around spring in the Asian market. During the mid-quarter, prices increased amid robust demand for n-Propanol in the international market as the Household & Personal Care sector saw a surge in demand from Asian buyers. At the same time, the production rates were affected by the inconsistent availability of feedstock Ethylene and Propylene supplies amid the limited availability of upstream Crude Oil in the global market due to production cuts by OPEC+. Towards the end of the quarter, prices inclined again as regional manufacturing units grappled with disruptions to production schedules due to a shortage of skilled labor. It resulted in diminished output rates and escalated operational costs. Additionally, global air cargo demand experienced its third consecutive monthly increase in March, driven by the expanding e-commerce sector and disruptions in shipping routes, particularly in the Red Sea region, leading to fluctuations in air freight rates. Consequently, n-Propanol prices inclined again in the EU market.
