Octanol supply remained tight this month, with prices continuing to rise (August 2026).

1. Hotspots this month

• 1. Octanol spot supply was tight in the market this month.
• 2. Profitability of octanol products improved this month.
• 3. Industry inventory fell to a low level.

2. Market analysis for this month

Domestic Octanol Market Price Monthly Change Table

Unit: yuan/ton

Data source: Chempricehub

In August, domestic octanol market prices continued their upward trend, with the market center accelerating after mid-month. By the end of the month, the Shandong octanol market reached 8,600 yuan/ton, up 800 yuan/ton from the end of July. The substantial price increase in the octanol market this month was mainly driven by supply-demand fundamentals. In August, multiple octanol units remained under reduced production or maintenance, keeping industry inventory at a low level. Meanwhile, downstream plasticizer and isooctyl acrylate plants gradually raised their operating rates, supporting sound domestic demand. Export orders remained stable, and there was essentially no spot selling pressure in the octanol market. At the end of the month, after octanol prices rose to high levels, the negotiation center became stalemated. Due to insufficient sustained follow-up from end users, downstream plasticizer buyers purchased high-priced octanol spot cautiously, and market negotiations consolidated at high levels at month-end.

3. Analysis of Market Influencing Factors

• 1. Price trends of international crude oil and feedstock propylene.
• 2. Restart progress of octanol units.
• 3. Procurement conditions of downstream plasticizers and end users.

4. Market Forecast for Next Month

On the supply side, national supply is expected to increase slightly, but regional divergence will be significant — supply in Shandong and North China will be ample, putting pressure on market prices, while supply in East China will remain tight, providing some support for prices. Regional price differentials may widen.

On the demand side, the downstream plasticizer industry is facing negative margins and shows resistance to high-priced octanol. However, overall operating rates remain stable, and raw material inventories are relatively low. Rigid restocking demand in the market will provide bottom support for octanol prices.

Overall, the octanol market in September is expected to see a tug-of-war between bullish and bearish factors. Increasing supply in northern regions and downstream losses will exert downward pressure on the market, while tight supply in East China and rigid downstream restocking demand will provide bottom support. High prices are expected to undergo a rational pullback, but with rigid demand underpinning the market, the downside is likely to be limited, and overall prices will fluctuate within a high-level range.

For more monthly market analyses, please refer to Chempricehub's Butanol-Octanol Monthly Report.