Why is sec-butanol's demand in China declining, and what does this mean for buyers?

Why is sec-butanol's demand in China declining, and what does this mean for buyers?
Sec-butanol (2-butanol) is primarily consumed as a feedstock for methyl ethyl ketone (MEK), with roughly 90% of its output going into MEK production. However, stricter environmental regulations in China have pressured downstream sectors such as coatings, adhesives, and inks, leading to lower operating rates and a shrinking MEK market. As a result, domestic sec-butanol demand has been on a yearly downward trend. Buyers should note that this demand erosion is structural rather than cyclical, tied to regulatory enforcement and substitution effects in solvent applications. Price support will increasingly depend on feedstock costs and export opportunities rather than domestic consumption growth.