For the Quarter Ending September 2024
North America
In the North American region, the market continued to grow, driven by demand from the paints and coatings industry. Butyl Glycol is widely used as a solvent in these products due to its low volatility and excellent solvency properties. Prices remained relatively stable, with slight fluctuations due to changes in raw material costs, particularly n-butanol and ethylene oxide. The demand for Butyl Glycol was strong, particularly from the textile and fabric industry.
It is used in the production of polyester fibers for clothing, carpets, upholstery, and other products. The supply chain remained robust, with key producers like Dow Chemical Company, Sadara Chemical Company, and BASF SE maintaining steady production levels.
There was increased focus on environmental regulations, with manufacturers investing in more sustainable production processes to reduce emissions and waste.
APAC
The third quarter of 2024 for Butyl Glycol in the APAC region witnessed a decline in prices, with significant factors influencing the market. The bearish trend was mainly driven by low demand from downstream industries, sluggish industrial activities, and decreased trading activities. Supply remained moderate to high, with stable production levels and efficient supply chains. Demand was moderate, with fluctuations observed in key sectors like automotive and packaging. India experienced the most price changes, reflecting overall trends in the region. The -6% decrease from the previous quarter and the -5% difference between the first and second half of the quarter highlighted the downward trajectory. Despite stable feedstock prices, overall market conditions remained negative, leading to the quarter-ending price of USD 115500/MT of Ethylene Glycol Monobutyl Ether CFR JNPT in India. Plant shutdowns further disrupted the market during the quarter, contributing to the challenging pricing environment.
Europe
In Q3 2024, the pricing environment for Butyl Glycol in Europe remained stable, reflecting consistent market conditions. Significant factors influencing market prices included stable supply and demand dynamics, moderate demand from various industries such as automotive, construction, and electronics, and stable production levels. The pricing trend was also influenced by steady raw material costs and efficient supply chain management. In Germany, which experienced the most significant price changes, the market followed a similar stable trajectory. The quarter saw a correlation in price changes, with a recorded -3% decrease from the previous quarter. However, the price remained relatively unchanged between the first and second half of the quarter. Despite fluctuations in global markets, the pricing environment in Germany remained steady, culminating in a quarter-ending price of USD 1575/MT of Ethylene Glycol Monobutyl Ether FOB Hamburg. Throughout the quarter, no major disruptions or plant shutdowns were reported, further contributing to the stable pricing sentiment in the region.
MEA
The third quarter of 2024 for Butyl Glycol in the MEA region witnessed a notable decline in prices, particularly in Saudi Arabia, where the market experienced the most significant price changes. Several factors contributed to this downward trend. The overall bearish market sentiment was influenced by a combination of moderate supply levels, low demand from key industries like paints and coatings, and increased government focus on environmentally sustainable alternatives. Additionally, stable production costs and weakened global demand played a role in the pricing dynamics. In Saudi Arabia specifically, the market faced challenges with reduced demand from downstream sectors, despite improvements in the manufacturing industry. The correlation between decreased industrial activities during the summer months and lower demand for Butyl Glycol was evident. Seasonal fluctuations and high inventory levels also impacted pricing trends. The quarter concluded with a price of USD 1320/MT for Ethylene Glycol Monobutyl Ether FOB Jeddah, reflecting the overall negative pricing environment that prevailed throughout the quarter. Plant shutdowns did not significantly affect the market during this period.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Butyl Glycol market exhibited a largely bullish trend, driven by several converging factors despite some counteracting pressures. The primary influence on the upward price movement was the increase in the cost of Ethylene Oxide, a crucial secondary feedstock for Butyl Glycol production. This rise came despite a noticeable 3.2% drop in the price of n-Butanol, a key feedstock, which typically influences Butyl Glycol pricing.
The US Ethylene Oxide market played a significant role in this dynamic. The market was affected by disruptions in the supply of upstream Ethylene, which were linked to maintenance turnarounds at production facilities. These disruptions, combined with steady demand from downstream industries such as Mono ethylene Glycol and Ethoxylates, helped sustain the production costs of Butyl Glycol. Seasonal patterns in these downstream sectors also contributed to maintaining demand levels, thereby supporting higher production costs.
However, the overall bullish market trend was mitigated by several countervailing factors. Demand from the construction-related paints and coatings sectors remained subdued, which put downward pressure on Butyl Glycol prices. The construction industry, in particular, faced challenges such as reduced renovation activities and project delays, leading to a weaker demand for Butyl Glycol used in coatings and paints. Furthermore, higher borrowing costs and recent regulatory shifts added to the financial strain on manufacturers and buyers alike, further dampening market sentiment.
The combination of rising feedstock costs, specifically Ethylene Oxide, and persistent supply chain challenges created a complex pricing environment. While the increased cost of Ethylene Oxide drove prices up, the overall market faced significant headwinds from subdued sector-specific demand and increased financial burdens. This interplay of factors highlighted a market scenario where positive influences on pricing were partially offset by broader economic and sector-specific challenges.
APAC
In the second quarter of 2024, the Butyl Glycol market in the APAC region saw a significant drop in prices. This decline was driven by a range of key factors that collectively shaped the market dynamics. The most pressing issue was a persistent supply surplus, which far exceeded demand. This imbalance was exacerbated by sluggish economic activity in critical downstream sectors, including personal care and paints and coatings. A decrease in feedstock prices, notably for ethylene oxide and n-butanol, further alleviated production costs, contributing to the downward pressure on Butyl Glycol prices. Additionally, logistical challenges and fluctuations in crude oil prices added complexity to the market, reinforcing the overall negative sentiment. In South Korea, the price changes for Butyl Glycol were particularly pronounced. The market experienced a clear downward trend throughout the quarter. Seasonal factors played a role, as demand typically wanes during the summer months, correlating with a slowdown in the paints and coatings sector due to reduced construction and renovation activities. This seasonality, combined with high inventory levels and tepid purchasing activity, created a consistent oversupply scenario that drove prices down. A comparison of the first and second halves of the quarter revealed a 2% price decrease, underscoring the ongoing market pressures. This decline was further exacerbated by disruptions in supply chains caused by plant shutdowns at key manufacturing facilities, adding to the volatility in prices. By the end of the quarter, the price for Ethylene Glycol Monobutyl Ether FOB-Busan in South Korea had dropped to USD 1510 per metric ton. This figure encapsulates the overall negative pricing environment of Q2 2024, reflecting the combined impact of oversupply, reduced demand, and production cost fluctuations on the market.
Europe
In the second quarter of 2024, the Butyl Glycol market in Europe experienced a significant decline in prices, primarily due to weak demand and an oversupply of the product. The market was marked by a combination of high inventory levels, sluggish trading activity, and a general market slowdown. These factors collectively drove prices downward. The key contributors to this downturn included excess inventory among suppliers and producers, reduced production costs—particularly due to falling feedstock prices for n-Butanol—and a persistent lack of demand from downstream industries such as personal care and paints. Geopolitical tensions and fluctuating feedstock prices added an additional layer of uncertainty, though their impact was comparatively minor. In Germany, the decline in Butyl Glycol prices was especially pronounced. The market trend was characterized by a steady drop in prices throughout the quarter, exacerbated by seasonal factors such as the typical summer slowdown in demand. The correlation between price changes and market conditions was evident, with the latter half of the quarter witnessing a sharper 4% decline compared to the first half. Overall, prices plummeted by 14% from the previous quarter. By the end of the quarter, the price for Ethylene Glycol Monobutyl Ether FOB Hamburg in Germany stood at USD 1570 per metric ton, reflecting the overall negative pricing environment. This significant drop underscores the market's sensitivity to imbalances between supply and demand and highlights the broader challenges facing the Butyl Glycol sector in Europe. Despite the unfavorable market conditions, there were no reported plant shutdowns or major disruptions, which further intensified the impact of oversupply. The Q2 2024 pricing landscape thus reveals a market struggling with high inventories, low demand, and a generally subdued trading atmosphere.
MEA
In the second quarter of 2024, the Butyl Glycol market in the Middle East and Africa (MEA) region experienced a pronounced bearish trend, driven by a confluence of adverse factors. The quarter was characterized by significant price declines, primarily due to weakened demand from key sectors such as paints and coatings, coupled with an oversupply of inventory. The market was saturated with excess stock as buyers reduced their orders, while manufacturing facilities continued to operate at full capacity, bolstered by a stable supply of Ethylene Oxide feedstock despite falling upstream costs. The easing of geopolitical tensions in the Middle East led to a drop in crude oil prices, further exerting downward pressure on feedstock costs. In Saudi Arabia, the impact of these conditions was particularly severe, with Butyl Glycol prices experiencing the most substantial drops. The decline was influenced by seasonal factors and ongoing supply-demand imbalances. A notable trend was the stabilization of prices towards the quarter's end, even though they initially fell sharply. The slowdown in the paint and coating industry during the summer months contributed to diminished demand, while high inventory levels from previous quarters exacerbated the downward pressure on prices. Compared to the previous quarter, Butyl Glycol prices fell by 8%, with an additional 6% decrease observed between the first and second halves of Q2. By the end of the quarter, the price of Ethylene Glycol Monobutyl Ether FOB Jeddah in Saudi Arabia had dropped to USD 1410 per metric ton. This decline reflects the broader challenges within the market, where weakened demand, excessive inventory, and lower upstream costs combined to create a deflationary environment. Despite these unfavourable market dynamics, no disruptions or plant shutdowns were reported, allowing for steady production levels amidst the challenging conditions. The overall sentiment remained negative, underscoring the tough market environment faced by the Butyl Glycol sector in Q2 2024.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the Butyl Glycol market in the USA experienced a notable surge in demand, driven by favorable market fundamentals. The paint and coating industry, a key downstream sector, exhibited robust demand, leading to increased market purchases.
Additionally, spot purchases from both the North and South American regions saw a significant uptick, further fueling the demand for Butyl Glycol. To meet the rising requirements from downstream industries, suppliers were compelled to elevate their production rates. Consequently, premium cargos traded at non-discounted rates, reflecting the heightened demand and giving suppliers a stronger bargaining position in the market.
This period witnessed a shift in the dynamics of the Butyl Glycol market, with suppliers capitalizing on the favorable demand conditions. Despite challenges such as increased production pressures, the market remained buoyant, with stakeholders actively navigating the evolving landscape. Overall, the first quarter of 2024 marked a period of growth and opportunity within the Butyl Glycol market in North America, driven by robust demand from the paint and coating industry and supported by elevated spot purchases from the region.
APAC
The Butyl Glycol market in the APAC region during Q1 2024 has been influenced by various factors, resulting in significant price changes. Overall, the market has experienced a bullish trend with high demand and limited supply. The supply of Butyl Glycol has been low, leading to a tight market and increasing prices. This has been driven by factors such as supply constraints, disrupted trade flows, and limited inventory levels. In terms of demand, the Paint and Coating industry has shown robust purchasing activity, contributing to the overall strength of the market. However, the market has also faced challenges due to sluggish market offtakes and cautious operations in downstream enterprises. The price trend has been influenced by factors such as strong market fundamentals, high purchasing activities, and increased production costs. South Korea, in particular, has seen the maximum price changes in the region. The market in South Korea has been characterized by a tight supply situation and strong market fundamentals. Prices have surged due to constrained product availability and increased trading activities. The Butyl Glycol market in South Korea has exhibited a bullish trend, with prices rising steadily throughout the quarter. Overall, the pricing environment for Butyl Glycol in Q1 2024 has been positive, with prices increasing in response to strong demand and limited supply. The latest quarter-ending price for Ethylene Glycol Monobutyl Ether FOB-Busan in South Korea is USD 1530/MT.
Europe
The first quarter of 2024 has been a challenging period for Butyl Glycol in the European market. Overall, market prices have been influenced by several factors, leading to fluctuations and a bearish sentiment. The supply of Butyl Glycol has been low, resulting in limited availability and higher prices. This scarcity has been driven by reduced stock pressure after aggressive sales efforts in the previous month. Additionally, the cost of production has increased due to strong demand from downstream industries, such as paint and coating, and adhesive and sealant. However, the demand from these sectors has been moderate, hampered by economic obstacles and low order entries. In Germany, the price of Butyl Glycol has experienced significant changes. In January, prices rose due to active purchasing activities and strong demand from downstream enterprises. This led to higher production costs and increased prices. However, in February and March, prices declined as purchasing activities and demand remained low. The market fundamentals have been weak, with piling stocks among the ports and sluggish downstream demand. Looking at the price trend in Germany, there is a noticeable seasonality and correlation with the overall European market. The first half of the quarter saw higher prices, driven by increased demand and production costs. However, in the second half of the quarter, prices declined due to weak market fundamentals and low purchasing activities. To conclude, the pricing environment for Butyl Glycol in the first quarter of 2024 has been negative and unstable. The market has been influenced by factors such as limited supply, weak demand, and low purchasing activities. The latest quarter-ending price in Germany was USD 1600/MT of Ethylene Glycol Monobutyl Ether FOB Hamburg.
MEA
The Butyl Glycol market in the Middle East and Africa region has experienced a positive pricing environment in the first quarter of 2024. Several factors have influenced market prices, including strong demand from the downstream paint and coating industries, limited supply, and disruptions in shipping operations due to attacks in the Red Sea. These factors have led to a shortage of supply in the market and increased freight rates, resulting in price adjustments. Among the countries in the region, Saudi Arabia has seen the maximum price changes. Despite facing logistical hurdles and supply crunches, the market in Saudi Arabia has remained bullish, with high demand and low supply driving price increases. The downstream paint and coating industries have shown robust demand, leading to increased market activity and higher price trends. Overall, the pricing environment for Butyl Glycol in the MEA region has been positive, with prices experiencing an upward trend. Although the percentage change from the same quarter last year and the previous quarter in 2024 is not provided, it can be inferred that prices have increased based on the bullish market conditions. The latest quarter-ending price for Butyl Glycol in Saudi Arabia is USD 1430/MT of Ethylene Glycol Monobutyl Ether FOB Jeddah. This price reflects the strong demand and limited supply in the market. In summary, the Butyl Glycol market in the MEA region, particularly in Saudi Arabia, has witnessed a positive pricing environment in the first quarter of 2024. Strong demand, limited supply, and disruptions in shipping operations have led to price increases, indicating a bullish market.
For the Quarter Ending December 2023
North America
During the fourth quarter of 2023, Butyl Glycol prices experienced a significant decline in the North American market, concluding in December 2023. The diminished demand from the transportation and industrial heating sectors led to a bearish market, with existing storage unit inventories proving ample to meet the low demand, eliminating the necessity for fresh stock.
Suppliers, grappling with the reduced demand, opted to maintain their prices while engaging in negotiations and offering discounts for bulk purchases. Simultaneously, the upstream sector witnessed a downward price trend, contributing to a reduction in the overall production cost of Butyl Glycol.
Buyers were cautioned to stay vigilant and closely monitor market conditions to secure sufficient supplies of Butyl Glycol. In response to the subdued domestic market demand, producers curtailed the production rate of the commodity, adopting a cautious approach in line with end-user demand. Trading activities were sluggish due to the surplus stocks stored in inventories, further contributing to a subdued market environment.
APAC
In Q4 2023, the price of Butyl Glycol in APAC region witnessed an increase in market trading fundamentals and improvement in downstream demand when compared with the previous quarter. Producers of Butyl Glycol have taken a firmer stance in response to the end-user Paint and coating industry's robust demand. Such a cost structure resulted from firmer product offers and a progressive growth in buying activity. Utilizing current supplies continued to be a major factor driving up the cost of Butyl Glycol in the domestic market. Regarding inventories, they were consistently used by the final user companies. The cost support from the upstream Ethylene oxide and n-butanol market remained brisk and the market trades were also elevated with high market fundamentals. In Malaysia, the price of Butyl Glycol surged to USD 1060/ton FOB Klang during Dec 2023. The supply of Butyl Glycol in the region stays low, with strong cost support from the downstream industries. The trading of Butyl Glycol in the domestic market surged due to increasing purchasing activity and increased production costs among the significant production units.
Europe
In the European market, the price of Butyl Glycol witnessed a sluggish market trend in the wake of weak spot trading discussions and limited demand fundamental. Given adequate supply among businesses and weak downstream demand, Butyl Glycol prices in Germany continue to hover low. Weak market fundamentals also caused feedstock ethylene oxide prices to drift South. Nonetheless, the limited and immediate use of items from the solvent sector led to an increase in n-butanol costs. Due to sluggish market fundamentals and a lackluster consumer appetite, the European Butyl Glycol industry declined overall. In Germany, the price of Butyl Glycol declined to USD 1250/ton FOB Hamburg. Paint and coating projects downstream were meticulously meeting the requirements of the ultimate client. This quarter, Butyl Glycol futures saw even more volatility as weak derivatives demand drove down prices. Demand in the European market was perceived as being fragile; yet the market is progressively contracting due to the downstream businesses' low product consumption.
MEA
In Q4 2023, the price of Butyl Glycol in Middle Eastern market declined in the wake of limited demand fundamentals and spot purchasing activities. Export providers decreased their offers for the Middle Eastern market as spot rates remain sluggish. Nonetheless, purchasers avoided exchanging cargos because they had lost competitiveness. More participants are negotiating new price levels at the start of the quarter, although October remains slow owing to longer supply and high-level stocks. Small price increases pass through transactions due to customers' presumably restricted demands and low purchase activity in the location. Participation in the Butyl Glycol markets remained bearish and trade volumes were relatively high. Elevation in coastal inventories and lackluster demand in the Middle Eastern market plummet trading activities. The demand index for Butyl Glycol declined, supported by a weak purchasing appetite and sluggish market fundamentals. Despite an increase in upstream crude oil prices due to the Israel-Hamas conflict, the Butyl Glycol market closed this month on a pessimistic note, with suppliers unable to negotiate a price reduction on bulk purchases.
