Production: The operating rate for n-butanol was 88%, with a weekly output of 60,200 tons.
Demand: The capacity utilization rate for butyl acrylate was 58.13%, with an output of 50,700 tons; the capacity utilization rate for butyl acetate was 67.84%, with an output of 20,300 tons; the capacity utilization rate for DBP (dibutyl phthalate) was 39.13%, with an output of 8,200 tons.
Trend Chart of Mainstream Regional Prices for Domestic n-Butanol (RMB/ton)
Data Source: Chempricehub Information
Weekly Price Change Table for Domestic n-Butanol Market
Unit: RMB/ton
| Market | Closing Price This Week | Closing Price Last Week | Change | Percentage Change |
|---|---|---|---|---|
| Shandong Region | 8075 | 8315 | -240 | -2.89% |
| East China Region | 8225 | 8475 | -250 | -2.95% |
| South China Region | 8250 | 8525 | -275 | -3.23% |
Data Source: Chempricehub Information
This week, the domestic n-butanol market trended downward amid fluctuations. It is reported that first, due to the continuous decline in international crude oil prices, propylene prices began to fall. Consequently, the cost of n-butanol decreased, weakening its price support. Second, although some maintenance units did not resume operation as scheduled, the overall operating load for n-butanol remained moderately high, resulting in ample market supply. Additionally, new units commenced trial production. Downstream users adopted a cautious approach, slowing down their intent to take delivery and increasing wait-and-see sentiment. As a result, they primarily consumed existing raw material inventories, leading to weak inquiries and transactions across the market. Production plants faced obstacles in sales, and after inventory levels rose, they proactively offered discounts to stimulate shipments. This led to the emergence of low-end market prices, while high-end prices gradually disappeared.
Downstream operating rates increased, ensuring sufficient supply of n-butanol.
The average weekly profit margin for n-butanol this week was 73 RMB/ton, a decrease of 115 RMB/ton compared to the previous period.
China's n-butanol output was 60,200 tons, an increase of 300 tons from last week, representing a growth of 0.5%. The unit capacity utilization rate was approximately 88%.
Next Week's Market Forecast
Supply side: Output from new units is expected to increase next week, leading to a projected rise in supply. 2. Demand side: There are expectations for downstream operating rates to decline next week, which will likely cause demand to follow suit. Demand next week is projected to be lower than this week. 3. Cost side: The propylene market is running weakly at high levels, suggesting a potential decrease in n-butanol costs.
Overall, next week sees a growing trend in n-butanol supply, while demand decreases due to lower downstream operating rates. This will further exacerbate the oversupply situation in the market. Wait-and-see sentiment will increase, with downstream users remaining cautious about taking delivery, focusing primarily on essential needs during price dips. High-end market prices will continue to diminish, with transaction centers shifting toward the lower end. Regarding cost and profit margins, propylene prices remain volatile at high levels; therefore, the relatively high cost of n-butanol will still provide some support to market prices. It is estimated that domestic n-butanol market prices will have room for fluctuating declines next week, though the magnitude of the drop is expected to be limited.
For more detailed weekly market analysis, please refer to the Chempricehub Information Butanols Weekly Report.
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