Why has 1-octanol maintained high profit margins despite falling chemical prices?

Why has 1-octanol maintained high profit margins despite falling chemical prices?
1-Octanol has shown remarkable resilience in a weak chemical market. Over the past year, prices fluctuated between 8,650 and 10,750 yuan per tonne, with a swing of only 24%—far less than the broader market decline. The average price stayed around 9,500 yuan, and current levels exceed that. Production margins have been consistently strong: from March 2022 to June 2023, the industry average profit rate reached 29%, peaking near 40% and never falling below 17%. The key driver is cost asymmetry—propylene feedstock prices dropped 14.9% from October 2022 to June 2023, while 1-octanol prices actually rose slightly. This cost advantage, combined with steady downstream demand from plasticizers, has kept margins well above the average for bulk chemicals.