Isobutanol Price Trend and Forecast

Isobutanol Regional Price Overview

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

Isobutanol Price Trend for the Q3 of 2024

Asia

In China, isobutanol prices fluctuated similarly to those of n-butanol, reflecting the broader market conditions for oxo-alcohols. The early part of the quarter saw a slight recovery in isobutanol prices, driven by a moderate increase in demand from the coatings and solvent sectors. However, this recovery was short-lived as the market faced challenges from weak downstream purchasing and ample supply in the latter half of the quarter. Factories in key production regions, such as Shandong, responded to the softer market sentiment by adjusting prices downward.
 

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As the quarter progressed, demand from key end-use industries, including paints and coatings, remained lackluster, further pressuring isobutanol prices. By mid-September, production disruptions due to maintenance activities and reduced output helped mitigate some of the downward pressure on prices. Following the Mid-Autumn Festival, there was a slight rebound in prices as supply tightened temporarily. However, demand remained focused on essential purchasing rather than speculative buying, which limited the extent of the price recovery. Overall, the Asian market for isobutanol in Q3 was characterized by fluctuating trends, with supply-demand dynamics being the primary drivers.

Europe

In Europe, isobutanol prices followed a more pronounced upward trajectory compared to the relatively moderate movements in Asia. The European market faced significant supply constraints throughout the quarter, largely due to disruptions in the availability of propylene, a crucial feedstock for isobutanol production. Scheduled maintenance turnarounds at major olefin crackers across the continent, including those operated by industry giants like LyondellBasell, BASF, and BP, severely curtailed the supply of propylene. This limited the production capacity for isobutanol, contributing to price increases.

The supply situation was further exacerbated by lower imports of propylene from key regions such as the Middle East and North America. While some relief came when Shell Chemicals resumed operations at its Moerdijk facility, the overall supply of isobutanol remained tight. This tightness led to panic buying and restocking by downstream buyers, particularly in anticipation of further price hikes. However, despite the upward pressure on prices, demand for isobutanol from key sectors like paints, coatings, and construction remained weak.

North America

In North America, the isobutanol market exhibited relatively stable pricing trends throughout the third quarter, with minor fluctuations in response to regional supply and demand dynamics. Early in the quarter, production disruptions caused by refinery issues and limited propylene availability had the potential to drive prices upward. However, proactive measures by major producers like ExxonMobil Chemicals helped mitigate the impact of these disruptions. Additionally, while Eastman Chemicals and OQ Chemicals announced price increases for isobutanol starting in August, the overall market remained relatively balanced. Demand for isobutanol in North America from key downstream sectors, including the paints, coatings, and plasticizers industries, was moderate throughout the quarter.

Analyst Insight

According to Procurement Resource, the price trend of Isobutanol is expected to recover although moderately in the months ahead in view of the skeptical outlook of the market.
 

Isobutanol Price Trend for the Q2 of 2024

Asia

In Q2 2024, the Asian iso butanol market saw prices move northwards, driven by increased construction activities and strategic price hikes by major oxo-alcohol manufacturers. The construction sector in Japan showed signs of recovery, supporting the escalation of demand from downstream industries like paints, coatings, and automotive manufacturing. Additionally, key producers such as OQ Chemicals and Eastman Chemicals announced price increases, impacting import costs.

The supply constraints as the number of imports declined further contributed to the price dynamics. Despite a prolonged decline in manufacturing output and soft demand, the market outlook remains positive with anticipated demand recovery and production cost pressures due to maintenance turnarounds in China and several other Asian countries alongside supportive crude oil prices amid geopolitical tensions.

Europe

The European market also witnessed some stabilization in the iso butanol market during the second quarter of 2024 after a rough start in the initial months of the year. This trend was influenced by the gradual improvement in consumer sentiments, visible in improved sales figures of the downstream industries. In particular, the end-user automotive industries acquired a major share in keeping the prices of the commodity in the green zone. Further, the scheduled shutdown of some of the major production plants limited the availability of the commodity in the region, raising the optimism of the trading sector.

North America

In Q2 2024, the North American iso butanol market experienced a price increase driven by improved demand and significant production constraints. Despite stable feedstock propylene prices, its limited availability due to force majeure events at multiple plants, including Dow Chemical and Enterprise Products Partners, led to higher production costs. Additionally, maintenance at Chevron Phillips Chemical Company's facility escalated the concerns of the suppliers.

On the other side, the demand for iso butanol showed signs of recovery in the downstream plasticizer sector, while construction industry demand remained subdued. However, the other end user segments saw positive growth, supported by a return of consumer optimism and an expansion of their spending budgets. This, along with ongoing price revisions by US suppliers and restocking efforts amid the hurricane season, suggests a continued upward trend in iso butanol prices.

Analyst Insight

According to Procurement Resource, the price of Iso Butanol is expected to be driven by the expansion of its consumer base and significant growth of its downstream industries along with slowed production rates globally.
 

Isobutanol Price Trend for the Q1 of 2024

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Asia

The isobutanol market experienced a decline in prices during the first quarter of 2024, attributed to weak cost support and ample supply-side inventory coupled with subdued downstream consumption. This resulted in low enthusiasm as the market only received a limited number of small orders with an almost non-existent number of bulk orders. The market transactions were poor, which prompted traders to offer discounts to stimulate the sector's demand.

The upstream propylene prices also showed narrow adjustments, providing general support to the isobutanol market. However, the price of upstream isobutyraldehyde fell due to insufficient cost support, potentially weakening support for the isobutanol market. The traders were, however, optimistic about the current market trend as they anticipated the revival of downstream consumption after the holiday season in China. The dynamics of the market even showcased some improvements and uptick, but only towards the end of the quarter, which was insufficient in catering to the surge in the prices of isobutanol.

Europe

In the first quarter of 2024, the German market experienced substantial inflation in isobutanol prices, soaring by a significant margin due to tight supply conditions exacerbated by the force majeure declared by OQ Chemicals at its production site in Oberhausen, Germany. This supply constraint, coupled with increased prices of feedstock propylene and announced price hikes by major oxo-alcohol producers, further fueled the price surge.

Similarly, Eastman Chemicals also announced a surge in its pricing quotations for n-Butanol and its subsidiary chemicals, resulting in an incline in the overall cost of production. On the demand side, the robust procurement of isobutanol from the automotive paints and coatings sector was driven by a surge in new car registrations across Europe; however, demand from the paints and coatings industries remained subdued in Germany due to a downturn in the construction sector.

North America

Global prices of isobutanol rose during the first quarter of 2024 due to several factors, including increments in feedstock propylene prices and a recent price hike initiated by OQ Chemicals in February, which was well reflected in the upward movement of pricing patterns of isobutanol in the US too. While prices of feedstock propylene remained stable in the North American market, they surged in the Asian and European markets throughout Q1 of 2024, contributing to market volatility. In North America, demand for isobutanol stemmed from improvements in housebuilding and commercial building activities. Additionally, the changes in the trading landscape and the rising interest of overseas players also prompted the surge in the prices of isobutanol in North America.

Analyst Insight

According to Procurement Resource, the price trend of Isobutanol is expected to be driven by the surge in the cost of feedstock materials and the rise in the pricing quotations by industrial giants.
 

Isobutanol Price Trend for October - December of 2023

Asia

In the fourth quarter of 2023, the Asian isobutanol price trend experienced a noteworthy shift in its trajectory. Beginning the quarter with a price of 9066 RMB/ton, the market initially faced downward pressure due to fluctuating demand and competitive market dynamics. However, as the quarter progressed, a gradual recovery was observed, fueled by increased demand in key sectors like manufacturing and automotive, along with a growing preference for sustainable chemicals.

By the end of December, the isobutanol market had not only stabilized but showed signs of an upward trend in prices. This positive shift was a result of balanced supply-demand dynamics and strategic stockpiling by manufacturers in anticipation of heightened end-of-year production activities. The quarter concluded with a cautiously optimistic outlook for the isobutanol market, reflecting its resilience and adaptability to both regional and global economic influences.

Europe

The fourth quarter of isobutanol price trend saw a mixed trend throughout the quarter. In November 2023, the European Iso-butanol market exhibited a significant rebound, primarily influenced by the strategic price adjustments made by key industry players. This shift was a response to the escalating costs of raw materials, notably propylene, which is integral to Iso-butanol production.

The uptick in demand from the automotive sector further bolstered the market. With substantial growth in automotive sales and an increase in vehicle registrations, the demand for Iso-butanol, used extensively in solvents and coatings, surged. This revival in the European Iso-butanol market was a reflection of both the region's adaptive pricing strategies to counter rising production costs and the robust demand from key industrial sectors.

North America

In the fourth quarter of 2023, isobutanol price trend exhibited noteworthy fluctuation. The North American Iso-butanol market in November 2023 paralleled the global trend of rising prices, largely due to similar factors affecting the European market.

The increase in prices initiated by major producers, including a +80 USD/mt rise by OQ Chemicals, was a direct consequence of the growing costs of raw materials like propylene. In the USA, the demand from the automotive industry, a major consumer of Iso-butanol, played a significant role in shaping the market dynamics.

The healthy demand in this sector, coupled with the global influence on pricing, led to a noticeable uplift in the North American Iso-butanol market. This trend underscored the interconnected nature of global markets and the impact of shared economic and industry-specific factors across continents.

Analyst Insight

According to Procurement Resource, the price trend for isobutanol is poised to demonstrate a positive price trend in 2024. The robust feedstock pries and sturdy demand dynamics are expected to escalate the prices for isobutanol.
 

Isobutanol Price Trend for the July - September of 2023

Asia

Isobutanol continued its remarkable performance in Asian markets since the prices continued to rise in the third quarter of the year 2023 as well. The hikes in agricultural product prices amidst the difficult rainy season pulled up the prices for Isobutanol feedstock corn and other starch crops. This readily increased the cost pressure for suppliers. But since this rise in upstream cost pressure was well supported by positive downstream demands from coating and fuel industries the Isobutanol price index kept on rising.

A long economic awakening in China and India post-COVID restrictions saw a rapid rise in Isobutanol-consuming industries, especially construction and fuel. Hence, owing to all these reasons a rising price graph was observed for Isobutanol during the said period. Overall, positive market sentiments were observed.

Europe

The European Isobutanol market, too, continued to follow its market trend from the previous quarter. The chemical sector in Europe carried on with its lowered demands in the given period as well. The reduced pressure from the alleviated freight and transportation charges also supported the downward market graph. Some stability in the energy prices after a long time also pushed down the industrial operational costs, further contributing to the southward flow of price trend.

North America

The American market trend for Isobutanol mirrored the European market trend as the price kept on stumbling here as well. The downstream industries posed fewer offtakes, given the gloomy economic situation and high interest rates. So, with limited operations and tepid demands, the Isobutanol prices wavered on the lower end of the price graph.

Analyst Insight

According to Procurement Resource, Isobutanol market trend are likely to carry on with similar patterns in the near future since the market drivers do not suggest any immediate shifts.
 

Isobutanol Price Trend for the First Half of 2023

Asia

The price trend of Isobutanol followed an upward trajectory in the first and second quarters of 2023. In the Asia Pacific region, the demand for the product was high as the paint and coating industries performed well in the first two quarters.

A significant spike in the trend was observed in March and April as trading during this session was at its all-time high, which caused a scanty of the product in the region. In addition to this, the prices were also supported by the hike in feedstock materials. In the later months of the second quarter, the rising trajectory was somewhat stabilized due to the stagnancy in demand and strong supply.

Europe

In the first quarter of 2023, the Isobutanol price trend was mostly influenced by the receding demand and limited offtakes from the paint and coatings industries. This decline caused the level of inventories to rise and, in turn, the overall prices of Isobutanol to decline.

In addition, to fuel the already weak market position of Isobutanol, the trading activities and exports also plummeted. However, the second quarter was favorable to the prices of Isobutanol. The hike was supported by improving market dynamics of the paint and coating industries along with the limited availability of the product on ports. Towards the latter months, the prices stabilized with the declining demand and slow movement of buyers.

North America

The initial phase of the first quarter of 2023 was favorable for the hike in the prices of Isobutanol. The market was supported by reduced availability as the demand was high, and the strong purchasing potential of buyers supported the surge in prices. However, in the second quarter, the market dynamics did not support the price trend of Isobutanol.

The prices dropped because of the weak demand from the downstream industries and slow trading activities. In addition, the market dynamics of Isobutanol were also feeble, and with excessive stockpiles and declined exports to South America and Canada, the prices nosedived.

Analyst Insight

According to Procurement Resource, the price of Isobutanol is estimated to showcase a downward trajectory in the upcoming quarter. The uncertain demand from the end-user industries and shifting market dynamics are expected to impact the pricing fundamentals negatively.

Procurement Resource provides latest prices of Isobutanol. 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.