Tight Supply and Seasonal Demand Propel N-Butanol Market
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N-butanol prices in Kandla remain steady at ₹84.5/kg, while the Asian market in Shandong witnessed a slight price increase this week due to tight supply and cautious downstream demand. India's seasonal demand, especially from the paints and coatings sector, is expected to sustain price stability until mid-2025.
Key Highlights
- Stable Prices: N-Butanol is priced at ₹84.5/kg in Kandla; Shandong prices rose by 50-100 RMB/ton this week.
- Supply Constraints: Tight inventories and stable production supported upward price trends in Asia and India.
- Seasonal Demand: Indian demand, led by paints and coatings, is projected to remain steady until June 2025.
- Global News: New toluene production unit inaugurated in India; advancements in critical minerals, lithium, and recycling globally
Chemicals prices: N-Butanol Prices Remain Firm Amid Global Trends
- N-Butanol is available in Kandla with bulk packaging under two brands: Imported and BPCL. Both are priced at ₹84.5 per kg.
- The Asian n-butanol market in Shandong experienced a slight upward movement this week, with prices rising marginally and the gap between high and low prices narrowing.
- N-butanol prices were in the range of 7,200-7,300 RMB/ton, reflecting a weekly increase of 50-100 RMB/ton.
Supply-Demand Dynamics Supporting Price Stability
- Supply remained tight due to relatively stable production levels and low spot inventory in certain areas. This constrained availability provided strong support to market prices.
- On the demand side, downstream users maintained limited inventories and adhered to essential procurement practices, indicating cautious buying behavior amidst constrained supplies.
- The tight supply scenario contributed significantly to the upward price movement.
- In India, demand is expected to strengthen and remain consistent until June 2025, driven by seasonal requirements in the paints and coatings industry.
- Additional consumption comes from industries such as bulk drugs, personal care, fragrances, and leather
Chemicals News: New Facilities and Strategic Developments
- India’s Mangalore Refinery and Petrochemicals Limited has opened a new toluene production unit at its Katipalla facility, with an annual capacity of 40,000 metric tons.
- Pilbara Minerals has secured a government grant for a pilot joint-venture lithium salts plant at Pilgangoora. The proposed plant will produce 3,000 metric tons per year, contributing to decarbonizing carbon-intensive processes
- Resonac’s petrochemical affiliate, Crasus Chemical, will license its VAM technology to China’s Yulin Chemical, which plans to construct a 200,000 metric ton per year VAM plant in Shaanxi
- Petronas Chemical’s methanol plant in Labuan, Malaysia, has been taken offline due to a technical glitch. The plant has a production capacity of 1.7 million metric tons per year
- Indonesia’s ALBA Tridi Plastics has begun production of R-PET at its new recycling plant, capable of processing 48,000 metric tons per year of PET beverage bottles into R-PET flakes and food-grade pellets.
Expert Opinion: Analysts Predict Stable to Bullish Trends
- Industry sentiment improved slightly with the tight supply situation and stable downstream demand for raw materials. Analysts anticipate that the n-butanol market in Shandong will remain stable to moderately bullish in the short term.
- However, fluctuations in supply and demand metrics need close monitoring, as they could influence market trends in the coming weeks.
Daily Market Report
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