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.
For the Quarter Ending December 2023
North America
The n-propanol price trend witnessed a bearish movement in North America during the fourth quarter of 2023 amid depressed demand and procurement activities from end-user industries. Initially, the demand remained low from the domestic downstream industries as the operating rates were moderate in herbicides and insecticides industries and reduced procurement activities from the buyers as winter approached the Northern Hemisphere.
However, during the mid-quarter, dry weather conditions because of the El Nina effect decreased the Panama Canal water levels and resulted in a decline in Cargo rates. At the same time, the decline in the USA's manufacturing sector's Purchasing Manager's Index indicated a contraction in manufacturing sector activities, leading to low demand for cleaning agents and floor polishes.
Furthermore, the feedstock Ethylene availability improved amid a reduction in the upstream Naphtha and Crude Oil prices after the resumed refinery operations and increased refining capacity in the region, and negatively impacted the production costs of n-propanol. Towards the end of the quarter, supply rates improved as heavy rainfall in the region increased the water levels of the Panama Canal and shipping activities. On the contrary, the orders were sluggish from the downstream personal care product manufacturers due to depressed demand and reduced trading activities in the region, which decreased the n-propanol prices.
Asia
In the fourth quarter of 2023, n-propanol prices witnessed consistent reductions in the APAC region due to underwhelming sentiments from the buyers. The market sentiments remained pessimistic amid the decline in the stocking practices from the regional buyers of the end-user industries like coatings, insecticides, and floor cleaners. Initially, prices decreased amid increased inventory levels due to sluggish offtakes from herbicide manufacturers amid a decline in Autumn season applications in the agriculture sector. Meanwhile, the cost support for n-propanol from the feedstock Ethylene declined during the mid-quarter due to reduced offtakes from Glycol industries, which improved the availability of Ethylene and lowered production costs of n-propanol Additionally, the reduction in upstream Naphtha and Crude Oil prices further contributed to the decrease in production costs. Towards the end of the quarter, the price trend showcased mixed sentiments in the region as product prices rose in China due to a decline in the production rates and moderate offtakes from the buyers. Meanwhile, affected trading activities due to heavy rainfalls towards the end of the year decreased the product prices in Southeast region.
Europe
Like the North American region, the n-propanol prices in the European region witnessed bearish movement in the final quarter of the year amid sluggish consumption rates and reduced procurement activities from the buyers. At the beginning of the quarter, depressed demand from ink manufacturers resulted in increased inventory levels. During the mid-quarter, orders fell noticeably from the cleaning agent and herbicide manufacturers amid reduced buying and procurement activities from end users. Simultaneously, the decrease in feedstock Ethylene offtakes from downstream Glycol industries led to a reduction in the cost support from Ethylene and negatively impacted the production costs of n-propanol. Meanwhile, the decline in the Eurozone manufacturing Purchasing Manager's Index throughout the period resulted in a decline in consumption rates from the end-user industries. Again, towards the end of the quarter, the market did not showcase any significant improvement in inquiries amid the ongoing economic slowdown in the region. At the same time, the feedstock Ethylene prices decreased during the month because of increased inventories amid sluggish offtakes from downstream cleaning agent manufacturers.
For the Quarter Ending September 2023
North America
The n-Propanol prices shifted movement in the North American region during the Q3 of 2023. Initially, quotations decreased by producers due to depressed demand from the end-user industries amid weak activities in the downstream sectors. Simultaneously, logistics duration increased due to affected US shipping and freight routes amid the decline in Mississippi and Ohio river water levels and delayed shipping routes activities through the Panama Canal. Consequently, product prices inclined during the mid-quarter. The supply rates remained tight from suppliers due to declined production rates amid affected supplies of upstream Ethylene due to a decline in global inventories of upstream Crude oil amid production cuts by Russia and OPEC+. Meanwhile, the hike in bank interest rates by the Federal Reserve Bank to cool down the rising inflation resulted in a slight decline in demand from buyers, causing a slowdown in the economic growth of the region, and offtakes remained moderate from the Pharma sector. Then, the occurrence of Hurricane Idalia on August 30, 2023, made landfall and caused a hindrance in supply rates, and prices rose again towards the end of the quarter.
Asia
In the Asian region, the n-Propanol price trend oscillated during the 3rd quarter of 2023. At the beginning of the quarter, prices declined amid firm availability of supplies due to destocking practices by regional producers at the end of the previous quarter. Meanwhile, production rates decreased amid weak availability of upstream Ethylene due to plant shutdown activities at Hanwha Total Petrochemical in South Korea. Simultaneously, regional storms and typhoons like Doksuri, Saola, and Khanun and heavy rainfall increased the logistics duration, and supply rates remained inadequate during the mid-quarter. Then, operating rates fell again due to the weak availability of upstream Ethylene supplies amid Crude Oil production cuts by OPEC+ and Russia. The product supply rates remained moderately low in the market. The product prices declined again towards the end of the quarter amid stabilization in upstream costs and moderate procurement activities from buyers before the arrival of festivals and holidays in the region. At the same time, demand fell from the insecticide producers amid declined offtakes from the agriculture sector with the rise in global temperatures.
Europe
The n-Propanol prices shifted movement in Europe during the Q3 of 2023. At the beginning of the quarter, prices fell amid surplus availability of stocks due to sluggish consumption rates from the downstream industries amid moderate activities in the end-user sectors. The high energy prices and hike in bank interest rates by European banks resulted in a decline in demand from buyers, causing a slowdown in the Eurozone growth. Consequently, consumption rates remained moderately low from end-user industries during summer holidays in the region. Meanwhile, orders were stable from the Pharma sector. During the mid-quarter, prices inclined marginally amid limited supply rates in the market. At the same time, cost support was high on upstream Ethylene due to the escalation in Brent Crude Oil prices amid stressed Crude Oil stocks due to production cuts by global refineries. It raised the product production costs towards the end of the quarter amid stable demand from downstream industries and the Pharma sector. Meanwhile, the hike in bank interest rates by the European Central Bank resulted in negatively impacted demand from buyers, and product prices declined at the end of quarter 3 of 2023.
For the Quarter Ending June 2023
North America
The n-Propanol prices showcased bearish sentiments during the Quarter 2 of 2023. Initially, the improvement in supply chain activities improved product availability in the market. Meanwhile, the production rates were moderately low due to increased labor costs amid shortages of labor due to the rise in recession in the region. It raised the production costs during the mid-quarter, and supplies were adequately available in the market. Meanwhile, offtakes were sluggish from herbicide producers due to reduced activities in the agriculture sector amid adequate availability of supplies and farmers' unaffordability to buy products at higher prices. Simultaneously, consumer demand remained inadequate from the skincare and cleaning agent manufacturers amid an increase in end-user product prices due to rising inflation. Towards the end of the quarter, prices remained stagnant amid stable demand-supply dynamics amid ample availability of supplies and cautious buying activities by buyers due to a hike in bank interest rates by the Federal Reserve, which decreased the product prices negligibly in the market.
APAC
The n-Propanol price trend showcased bearish movement in Asia during quarter 2 of 2023. Initially, prices decreased due to the firm availability of supplies amid improvement in the supply chain activities. After that, the prices contracted during the mid-quarter due to an improvement in product availability and dampened offtakes from the paint and coating industries due to decreased consumption rates from the construction and automotive sectors. Meanwhile, in China, the n-Propanol price trend oscillated during Q2 due to the moderation in the production rates and weak availability of supplies before the Labour Day holidays in the mid-quarter and the Dragon Boat festival at the end of Q2. Towards the end of the quarter, the orders plunged from downstream herbicide producers amid weak activities in the agriculture sector and globally reduced demand for agrochemicals. Furthermore, Indian buyers declined the consumption rates of skincare products amid the rise in food inflation. It negatively impacted consumer's pockets and raised the domestic inventory levels.
Europe
In the European region, the n-Propanol prices decreased consistently like the North American region during Q2 of 2023. Initially, the available inventory levels were firm due to an improvement in supply chain activities. The production rates declined during the mid-quarter amid an increase in production costs. Meanwhile, the n-Propanol supplies were adequately available in the market. Simultaneously, the low offtakes from herbicide producers due to reduced activities in the agriculture sector amid adequate availability of supplies raised the inventory levels of n-Propanol. The demand remained feeble from skincare and cleaning agent manufacturers due to the high inflation in the region and an increase in end-user product prices. The contraction in the price intensified at the end of quarter 2, amid firm availability of supplies and reduced demand from ink and hand sanitizer manufacturers. The hike in bank interest rates by the European Central Bank and the Bank of England to curb rising inflation made domestic buyers conscious while making purchases, and they avoided any unnecessary trading activities. Consequently, the producers revised their quotations negatively to improve the offtakes.
For the Quarter Ending March 2023
North America
In Q1 2023, the n-Propanol market showcases a feeble trading dynamic when compared with the previous quarter. As a result of deterred demand and an oversupply in the regional market, the price of n-propanol was lowered. With a persistent bearish demand trend, the steep price fall was triggered by a plunge in upstream propane prices. Exports from the USA to the global market were also reduced with slumped market sentiments. Spot cargoes at the main ports were muted as the market had sufficient supply, and deteriorating demand affected the trading market. Major downstream solvent industries remained weak with lower industrial volume offtakes and stockpiling of products in the regional market.
Asia Pacific
This quarter, the n-propanol market surged in Jan 2023 due to an increase in demand from the domestic and overseas markets. However, trading activities slumped in the Asia Pacific region due to a high production rate in January, resulting in product oversupplies. Availability of this commodity in more volumes in the market, along with diminished demand from downstream companies, were found to be the reasons for the price drop. The demand for n-Propanol in China was moderate from the downstream textile and solvent industries for use in their subsequent processes. Exports of n-propanol from China to other Asian regions remain lackluster, and buyers have purchased the product on a need-to basis.
Europe
In Europe, the n-propanol market remains affected by bearish demand and high product inventories among enterprises. Recession worries and feeble spot trading activities had hampered the increased product supply in the region along with the deteriorating downstream solvent industries market. In terms of inventories, they started to accumulate, dragging the price trend for this quarter. The weak price trend was aided by reports of limited demand and sufficient product availability. Exports of n-propanol from Germany and the Netherlands also plunged with limited trading activities, and producers offered the product to suppliers at negotiable rates to clear their existing stocks.
For the Quarter Ending December 2022
North America
This quarter, the n-Propanol markets in North America and Europe both exhibited the same pattern. As a result of lower prices for upstream crude oil, the base material for this product, ethylene, saw price reductions, lowering this commodity's costs. The average demand for this commodity from businesses downstream limited upstream productions. Suppliers and sellers, too, had reduced their imports of this commodity for the same reason. Because this product was readily available in inventories, the oil and paint manufacturing companies were able to satisfy their production requirements.
APAC
In the first two months of this quarter, n-Propanol's market fell across the entire Asia-Pacific region. China's price drop can be attributed to a number of factors. The provincial governments' implementation of the COVID-19 curbs, which had a significant impact on production activities in both upstream and downstream businesses, was the primary factor in the cost reduction. As a result, the stocks in the warehouses and inventories were sufficient to satisfy the demands of the oil and paint companies, who had a modest interest in this product. However, the n-propanol price increased in December because upstream n-propanol producers were continuing to maintain average production rates. As a result, there was limited availability of this commodity in the market, and as a result, n-propanol's price increased. The market and price movements of n-Propanol in South Korea and India too were identical to that of China in this quarter.
Europe
The markets for n-Propanol in this quarter were comparable to Asian markets. n-Propanol prices in Germany were primarily affected by the fall in the price of ethylene, the product's base material. It was found that producers of oils and paints had a reasonable interest in this product because they were very worried about how much more expensive it would be to use energy because of the ongoing conflict between Russia and Ukraine. Production rates were found to be average because upstream businesses were not producing n-Propanol more for the same reasons.
For the Quarter Ending September 2022
North America
The events that took place in the crude oil market had an impact on the markets for this product in North America as well as the markets in Asia. This quarter, the price of n-Propanol decreased in the United States. The average demand for this product from downstream businesses was limited due to a lack of labor because of summer vacations and lower ethylene prices, both of which contributed to the product's lower cost in this quarter.
APAC
This quarter, n-Propanol's market fell across the entire Asia-Pacific region. Several factors contributed to the decrease in the n-Price price in China. The primary reason for price reduction in the early days of this quarter was the recession in Asian crude oil markets, which resulted in lockdowns being enforced by provincial governments. However, because of severe power shortages, n-Propanol-using oil and paints companies and other n-Propanol-producing industries had to halt completely or significantly reduce their production rates beginning in the middle of August. So, n-Propanol closed its market in China this quarter at USD 1,185 per MT on FOB – Qingdao basis. In this quarter, the market for n-Propanol in India was identical to China's. Reduced crude oil prices and a moderate demand from downstream businesses for this product influenced its price.
Europe
The markets of n-Propanol in Europe were identical to that of the Asian and European markets in this quarter. N-Propanol witnessed a significant downfall in costs in these three months (from July to September). The ongoing war between Russia and Ukraine tightened the supply of natural gas and crude oil, which significantly increased production and energy costs. As a result, downstream businesses were extremely concerned, and they showed only a passing interest in this product. In addition to these, the cost of ethylene too got lowered, which too had a role in bringing down the cost of n-Propanol in Europe this quarter.
For the Quarter Ending June 2022
North America
The n-Propranol market in the North American region staggered upwards within a rangebound amidst the gyration in the market dynamics throughout the second quarter of 2022. The n-Propanol market in the US witnessed significant cost support from the gyration in the upstream energy cycle after the western nations imposed sanctions on Russia. Furthermore, the n-Propanol producers are preparing themselves for the superfund tax implemented by the US authorities to clean up waste sites that cover a more comprehensive range of substances, including n-Propanol imported into the US domestic market. As a ripple effect, it strengthens the producer's will to raise the offered quotations for n-Propanol in the US. In addition, the US authorities were countervailing duty investigation on n-Propanol on the exported volumes to China.
Asia Pacific
In the second quarter of 2022, the n-Propanol market in the Asia Pacific region observed mixed sentiments besides varying market dynamics across the sub-region in Asia. The Northeast Asia market is consistently gyrated as the western sanctions on Russia's energy supplies have forced the market participants to restrategize the supply chain. The stricter restrictions of the Chinese authorities and resurgence of COVID in China significantly weighed over the n-Propanol market by weakening the producer's sentiments to ease the offered quotations in the domestic market. The prices for n-Propanol dropped by 12.6% since the start of 2022.
Europe
During the second quarter of 2022, the n-Propanol market in the European region remained bullish amidst the higher cost support from the upstream. The retaliatory sanctions on Russian energy supplies and the decision of the EU to put a complete embargo on the Russian Crude supplies have significantly impacted the domestic economy as the inflation shot up in the domestic market, and the market participants lean toward a conservative approach in the buying sentiments. Major market sources informed that the demand for the finished good is soaring much faster in the European markets.
For the Quarter Ending March 2022
North America
Prices of n-Propanol experienced an upward trajectory in North America due to consistent demand from domestic as well as the international market in Q1. Industrial intermediate and pharma remained major downstream driving sectors during this quarter in the USA, while most of the exports demand was also driven by these segments. However, overall buoyancy was induced after witnessing a sudden surge in upstream Crude oil with the impact of the Russia-Ukraine crisis. The price of n-Propanol for the US towards the end of the quarter surged to USD 1475/MT FOB Texas. Increased freight charges and container shortages further uplifted the prices across the North American region.
Asia Pacific
Soaring crude oil prices coupled with stable offtake from regional market pushed up the costs of n-Propanol in the Asian market. Since rising crude oil value has been a significant concern for downstream derivative players, they were compelled to raise their quotations timely to sustain margins. In addition, despite slow offtakes from the paints and coating sector during this quarter, the pharma sector maintained overall demand for the product. Furthermore, the rising infection rate of Covid-19 in China and lockdowns in Chinese cities, including ports, have disturbed the overall economic growth of the n-Propanol market. Thus, post witnessing a significant hike in the past two months, the price hovered around USD 1579/MT for n-Propanol Ex-Delhi NCR in the quarter ending March.
Europe
Firm demand fundamentals for n-Propanol from the pharmaceutical intermediates and industrial solvents supported the product’s outlook in Europe throughout the first quarter. Since February, constricted supplies with low production levels at several manufacturing units due to the geopolitical tension between Russia and Ukraine, along with surging freight charges, caused the prices to trace upward. The disrupted supply chain and limited availability of shipping containers further sent ripples to the n-Propanol prices in the region. Also, stable offtakes from the downstream pharmaceutical industry and solvent sector across Germany and United Kingdom held up the pricing dynamics. Thus, in March, the price discussions settled at USD 2000/MT for n-Propanol FOB Rotterdam.
For the Quarter Ending December 2021
North America
Despite, most of the chemical commodity’s prices heard climbing up across US market, n-Propanol maintained overall stability during this quarter. During October, traders heard revising their offers to sustain profitability, as input cost was rising effectively. However, during November crude oil prices fell which influenced price trend of several commodities including n-Propanol. Consequently, traders widened the window of negotiations, to sustain offtakes, which unexpectedly remained low. In addition, wavering demand also affected raw material cost, thus, plummeting raw material cost opportune producers to keep their price competitive. Conclusively, n-Propanol price assessed around USD 1150/MT during November.
Asia
n-Propanol offtakes remained dull throughout the fourth quarter 2021 as the demand from the downstream sectors remained muted. However, demand fundamentals varied with country over country and marginal fluctuations was observed during November. In China, dual energy policy reduced the overall country’s output, which affected the offtakes for n-Propanol from downstream derivatives manufacturers. Meanwhile in India, Offtakes improved during November, which eventually kept its downtrend continue till the end of December. n-Propanol heard hovering around USD 1065/MT India during mid of December.
Europe
Rising concerns over soaring energy prices, strained European producers and traders during this period. Critical shortage of natural gas resulted into steep hike in prices of several commodities regardless of low demand fundamentals. However, n-Propanol offtakes in Europe performed better than other regions on the back of sudden rebound in industrial activities. Furthermore, raw material prices showcased a steep uptrend in the meantime, which also affected the overall price trajectory for n-Propanol in the meantime. Therefore, n-Propanol price remained stable during this quarter across European market and some marginal hikes was observed.
For the Quarter Ending September 2021
North America
In the North American region, the domestic market demonstrated a slight upward trend during the 3rd quarter of 2021. In the US, n-propanol prices had been steady, and the trend continued throughout the quarter with marginal variations tending towards an upward slope. Demand from the downstream pharmaceutical and cosmetic industries supported the mild upward trajectory. Hurricane Ida's landfall disrupted the n-Propanol market marginally as prices saw a short spike in the last week of August and the first week of September. Prices had, however, stabilized over the closing weeks of Q3 owing to the recovery in the production.
Asia Pacific
During the third quarter of 2021, the n-Propanol showcased mixed sentiments across the Asia Pacific region however an increment in the demand was observed from the downstream sectors. As previously estimated, price dynamics changed frequently for n-Propanol in the Indian market, due to short-term changes in upstream prices. During the last weeks of Q3, prices declined effectively and later rebounded marginally due to changes in upstream cost. Prices were last assessed at USD 1158 per MT Ex-Kandla (India) in September. In addition, regional demand from the solvents sector maintained overall stability, while traders were expecting improvement in offtakes in the next quarter.
Europe
The prices of n-Propanol rose effectively in the European region during Q3 of 2021. Due to the supply scenarios in the domestic market, several producers implemented a rise in the prices of all propanol derivatives. Hikes in energy cost raised the offered quotations towards the end of Q3. Several market players awaited supplies to normalize and volumes to increase for any major ease in the regional pricing.
For the Quarter Ending June 2021
North America
During the second quarter, the North American region observed an exceptional demand for n-Propanol buoyed by seasonal pickup in demand from the paints and coating industries. Producers ramped up run rates to fulfil the n-Propanol enquiries which were piled up due to tightened market scenario since Q1. The supply demand imbalance resulted in surge in regional n-Propanol offers during Q2. Sasol announced positive price correction in n-Propanol rates by USD 567 per tonne effective from 1st June. Supply outlook in the North American market improved by June as the industrial activities in the Gulf coast restored from the devastating impact from the winter storm Uri. Although due to the uncertainty of the upcoming hurricane season, the buyers were booking for large orders to replenish the inventories levels. N-Propanol CFR Texas price was assessed at USD 2310 per tonne in June.
Asia Pacific
Amidst severe pandemic-related uncertainties with the arrival of deadly second COVID wave in India, the industrial activities were slackening in operations amidst the restricted commercial activities. Several downstream buyers were planning out to manage their inventory levels. In China, the n-Propanol market remained weak throughout the quarter taking cues from the cheaper feedstock and narrowed market spread, although the overall market outlook of n-Propanol stabilized in June. The pricing trend in India observed a major slump in the second quarter with Ex-Works Mumbai (India) discussion assessed at USD 1355 per tonne in June, reporting a downtrend of 16.42% from the prices in the previous quarter.
Europe
n-Propanol supplies in the European region improved compared to the previous quarter, as Oxea chemicals ended its prolonged turnaround in the second quarter, along with improvement in imported volumes from the USA. Demand surged phenomenally from the downstream paints and coating industries as the region witnessed seasonal inquiries from the construction sector throughout the quarter, although offtakes were consistent from the pharmaceutical and automotive sector. As a ripple effect, the n-Propanol prices remained firm on the back of strong demand in the second quarter.
For the Quarter Ending March 2021
North America
Extreme freeze weather conditions in the USA Gulf region negatively impacted n-Propanol supplies during the first quarter of 2021. Due to limited feedstock availability and adverse effects of the winter storm, a major production facility of capacity 250,000 MT/year of n-Propanol was temporarily shut down during mid-February. Exports to other countries were hampered due to disrupted trade in the region. Demand however surged amidst tight supplies as the offtakes from the solvents sector increased in the first quarter. OQ Chemical surged the prices of n-Propanol by +USD 120/MT in the first half of the quarter.
Asia-Pacific (APAC)
n-Propanol supplies in the Asia Pacific region were balanced-to-tight during the Q1 2021. Prices showed an astonishing spike in March buoyed due to sudden decline in imports from the US. The freezing snap in the US has affected n-Propanol production as well as export potential considerably and has laid a direct impact upon the supplies of several Asian and European countries. Due to improved consumptions from the paints and coatings, and Antifreeze sector the n-propanol supplies witnessed an upsurge in Q1. The significant hike on the prices of Crude oil proportionally impacted the prices of n-Propanol in the APAC region.
Europe
The European n-Propanol market was severely impacted by the supply shortages throughout the quarter in 2021, as the refineries operating rates were affected in the northwest region amid the cold weather, followed by the reduced imports from the USA. OMV announced to build a 1.25 million liters/year facility to produce n-Propanol in Schwechat Facility. Demand from the downstream sectors was ample as offtakes from paints and coatings sector improved.
For the Quarter Ending December 2020
North America
Due to strong demand of the n-Propanol and inclining prices of upstream products, leading US producers escalated the prices for n-Propanol during Q4 2020. A prominent factor which affected the supply of n-Propanol in the North American region, was power and production outages due to weather related challenges in the US. By the end of the fourth quarter, some propanol dealers made upward adjustments to pass on the price increases of upstream crude oil to its end consumers, which had a little impact on the overall market trend.
Asia
n-Propanol supply across Asia was observed getting firmer by the end of the Q4 with the prices gradually decreasing due to strong supply. Spot prices of n-propanol were observed to be hovering around USD 1520 per tonne FOB China. The downstream demand from the solvent industries tumbled, thus pressuring the rates of n-Propanol in the regional market. In India, demand outlook remained stable with prices witnessing a fall by USD 108/tonne between October to December, while maintaining an average of USD 1575/tonne during the quarter.
Europe
The demand for n-Propanol remained stable in the first half of the fourth quarter which subsided later due to fall in demand. However, some producers sought for increase in prices as it was being largely used as a substitute for IPA. Towards the end of the year, fresh lockdowns imposed due to new wave of infections disrupted the demand for the downstream products. The surge in crude oil however, supported the price curve by a significant percentage.
