1,4-Butanediol (1,4-BD) Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of 1,4-Butanediol (1,4-BD) in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

1,4-Butanediol Price Trend for the Second Half of 2023

Asia

The butanediol market drivers fell short in front of persistent economic challenges and a limited supply of crude oil in the third quarter of 2023. However, the dynamics were stabilized by domestic and overseas demand. Also, the product scarcity was caused by the supply shortage due to the shutting down of major manufacturing plants, which levered in favor of the butanediol price trend. In the fourth quarter, the butanediol market turned favorable, and the prices gained stability. Additionally, the downstream demand also improved slightly, exerting a positive influence on the butanediol prices.

Europe

The European countries faced alterations in downstream industries' preferences, such as paints, coatings, and construction, which impacted the pricing trajectory of butanediol negatively. The suppliers majorly focused on decreasing the inventory levels as the existing stockpiles, and thus, the traders offered huge discounts on bulk purchases. The market stabilized in the later months of the year as the costly imports from Asian countries and slowly and steadily improving market demand influenced the market positively.

North America

A slight surge in the cost of raw materials and a boost in sales figures helped in the rise in the butanediol price trend during the third quarter of 2023. Additionally, the market also witnessed a gradual surge in the overall cost of production due to the rise in the prices of crude oil. But this phase of the market could not be followed throughout the quarter and with the influx of cheap imports from Asian countries, the manufacturers had to reduce their price quotations in order to remain relevant in the competition.

Analyst Insight

According to Procurement Resource, the price trend of 1,4-Butanediol is expected to follow a feeble trend in the upcoming quarters as the demand from the downstream industries is likely to be tepid.

1,4-Butanediol Price Trend for the First Half of 2023

Asia

The 1,4-butanediol market witnessed an oscillating trend in the Asian Pacific region in both the first and second quarters of 2023. The prices were majorly affected by the on-off demand from the downstream sector and the lower number of inquiries due to the holiday season in China.

However, some slight incline was attributed to the rising operational rates and logistical challenges encored by the majority of suppliers. The weak performance of the 1.4 butanediol market was also because of disruptions in the supply chains due to the shutting of several manufacturing units because of a shortage in the availability of feedstock.

Europe

A stable price trend of 1,4-butanediol was observed in the European region in the first quarter of 2023. The prices were stagnant because of some minor economic fluctuations and high imports from Chinese manufacturers. In addition, the 1,4-butanediol was impacted by sluggish demand from the coating industry and the slow movement of the tetrahydrofuran sector. Owing to these uncertainties, the prices declined in the second quarter. This quarter was also affected by wide strikes from the union members, which lowered the rates of production, impacting the overall supply chain.

North America

In the first quarter of 2023, the price trend of 1,4-butanediol inclined as it was supported by the rising demand and high feedstock prices. Along with this, the economic activities of the region gradually increased their pace, and as a result, the speed of production was stable during this time. However, in the second quarter, the prices nosedived because of the weak demand from the downstream industries.

The poor performance of construction, PTMEG, polymers, and other related sectors was a direct result of the rising inflation, which led to a significant rise in production costs. The manufacturers were not able to put up with these market dynamics, and as a result, the price trend of 1,4-butanediol declined in the second quarter of 2023.

Analyst Insight

According to Procurement Resource, the price of 1,4-butanediol is expected to remain volatile in the upcoming months. The major influencing factors dictating the price trend of 1,4-butanediol will be the demand from the end-user industries and the rising global inflation rates.

Procurement Resource provides latest prices of 1,4-Butanediol (1,4-BD). Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.