In Q1 2025, 1,4 Butanediol prices in the Chinese market declined by 1.13%, reaching USD 1053/MT. The slight decrease was influenced by typical seasonal trends before the Lunar New Year, which often lead to a temporary slowdown in industrial activity and destocking of the products. While demand from the downstream market remained relatively weak during the early part of the quarter, ongoing market trend continued to fall during this time.
Feedstock prices showed limited fluctuations, offering little support to offset the broader downward pressure. Overall, a combination of muted downstream demand, persistent downward trend, and seasonal inertia shaped a cautious market sentiment in Q1.
In Q4 2024, prices in the Chinese market declined by 3.62%, settling at USD 1065/MT. This drop was primarily driven by weaker feedstock prices, which lowered production costs and exerted downward pressure on the market. Seasonal trends also played a role, as demand typically softens during the final quarter due to reduced industrial activity and holiday-related slowdowns.
Additionally, diminished demand from the downstream market, particularly from sectors like manufacturing and construction, further contributed to the price decline. The combined impact of these factors reflected a bearish sentiment across the market during this period.
In Q3 2024, the prices of 1,4-Butanediol (BDO) in the Chinese market has declined further by 5.23%, reaching USD 1105/MT. This continued downtrend is driven by weak feedstock prices (notably acetylene and formaldehyde) and sluggish demand from downstream industries such as THF, GBL, and PBT. With lower production costs and soft consumption, market sentiment remains bearish, and BDO prices are expected to stay under pressure in the near term.
In Q2 2024, 1,4 Butanediol prices continued to fall, declining by approximately 4% from Q1 reaching 1166 USD/MT. The South China BDO market remained weak, with limited news and reduced supply-side support contributing to cautious, bearish market sentiment. Despite efforts by suppliers to stabilize prices, trading activity was constrained, and market focus remained weak.
In East China, the BDO market also showed signs of weakness as maintenance facilities resumed operations, further softening supply-side support. Downstream demand remained moderate, with industry players maintaining a cautious outlook, resulting in lacklustre market performance.
In Asian market, 1,4 Butanediol (BDO) prices experienced a decline in prices. In China prices declined by approximately 6.6% in Q1 2024 compared to Q4 2023 and reached 1215 USD/MT. The butanediol (BDO) market in South China remained weak and volatile, with diminished downstream demand and subdued spot trading activity.
Some manufacturers with inventory adopted a more aggressive shipping strategy, though actual transactions were constrained by narrow market negotiations. In East China, the BDO market faced similar conditions.
Despite efforts by suppliers to maintain price stability, pre-Spring Festival demand remained light, and holding manufacturers were focused on shipping, leading to negotiated prices slightly below market expectations.
In Q1 2025, 1,4 Butanediol prices rebounded by 4.11%, reaching INR 1,698.15/MT, nearly returning to Q4 2023 levels while India Ex prices continued to fall reaching USD 2034/MT. The rise in import prices was influenced by renewed downstream demand from the automotive, adhesives, and textile sectors, coinciding with improved macroeconomic indicators and rising crude oil prices, which impacted upstream raw material costs.
Taiwanese exporters experienced tighter margins and moderated supply availability, prompting firmer pricing in the export market. Indian buyers, forecasting further upward price movement, increased procurement volumes, contributing to the CIF price rise.
In Q4 2024, import prices corrected by 5.97%, dropping to INR 1,631.15/MT. Also, India Ex prices declined to USD 2216/MT by 2.87% The decline followed a period of restocking in Q3 and reflected market normalization as Taiwanese plants resumed operations and supply conditions improved. Indian demand remained steady but shifted to more conservative procurement strategies following the previous quarter’s surge. Increased availability from alternative suppliers, including Southeast Asia and domestic players, added downward pressure to prices. Buyers prioritized cost control and opted for need-based imports in anticipation of further market stabilization.
In Q3 2024, Prices surged by 7.87% to USD 1735/MT, while India Ex prices also increased by 9.9% reaching 2281 USD/MT, marking the highest quarterly rise in the observed period. The price hike was primarily attributed to tightened supply conditions in Taiwan, where multiple producers reduced output due to scheduled maintenance and limited feedstock availability. This coincided with a resurgence in Indian demand from sectors such as polyurethanes, elastic fibers, and specialty chemicals, leading to aggressive short-term buying. The combination of reduced supply and increased downstream activity led to a sharp upward revision in CIF pricing for Taiwan-origin BDO.
In Q2 2024, CIF prices recorded a marginal decline of 0.69%, reaching USD 1608/MT while India Ex prices declined to USD 2076/MT by 5.75% The market remained relatively flat, with limited fluctuations in feedstock and freight costs. Demand from the resins and synthetic leather industries showed gradual recovery, yet overall sentiment was restrained due to global economic uncertainties.
Taiwanese exporters offered competitive rates amid increased regional competition, while Indian buyers continued to opt for short-term sourcing to avoid exposure to price volatility. This led to stable yet cautious trade flows during the quarter.
In Q1 2024, Import prices from Taiwan declined by 4.74%, settling at USD 1619/MT while India Ex prices increased to USD 2203/MT. The decrease was largely driven by seasonal slowdown in downstream consumption following the year-end inventory buildup. Indian buyers adopted a cautious stance amid lower domestic consumption and subdued performance in sectors like automotive chemicals and thermoplastics.
Improved inventory availability in the local market and reduced urgency in imports contributed to weaker transactional values. While India domestic market saw a market correction and concluded an opposite trend during the time.
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1,4-Butanediol (1,4-BDO) is a versatile chemical intermediate with diverse applications, notably in the production of polymers. Derived primarily from butadiene, a hydrocarbon obtained from petroleum refining, 1,4-BDO serves as a crucial building block for various important chemicals and materials, showcasing its significance in modern industrial processes.
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PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
Property | Specification |
Purity (%) | ≥≥
99.5
|
Boiling point @ 760 TORR | 228°C/442°F |
Specific Gravity (20°/20°C) | 1.015 |
Hydroxyl Value | 1245 |
Flash Point (Closed Cup) | 115°C/239°F |
Applications
1,4-Butanediol (BDO) is a versatile chemical used in a variety of industrial applications. Its primary use is as a precursor for producing tetrahydrofuran (THF), which is a key component in manufacturing spandex and other elastomers. BDO is also used to produce polybutylene terephthalate (PBT), an engineering plastic used in automotive parts and electronics. Additionally, it serves as a solvent in the pharmaceutical industry and is a critical intermediate in the production of polyurethanes, adhesives, and coatings. BDO’s role in the creation of biodegradable plastics and its increasing use in bio-based applications are also emerging trends.
Crude oil prices have a significant influence on 1,4-Butanediol pricing because BDO is derived from petrochemical feedstocks, such as acetylene or butadiene, which are byproducts of oil refining. When crude oil prices rise, the cost of these raw materials increases, leading to higher production costs for BDO. Conversely, when oil prices drop, BDO manufacturers can benefit from lower feedstock costs, often leading to a decrease in BDO prices. Procurement teams should monitor global crude oil trends closely, as this can affect not only the price but also the supply chain and lead times for BDO sourcing.
Seasonal demand fluctuations, especially in industries such as automotive, textiles, and construction, significantly affect 1,4-Butanediol prices. For instance, demand for BDO typically rises during the spring and summer months when production ramps up in sectors like coatings and spandex, both of which rely on BDO. Conversely, demand may taper off during winter, leading to a decrease in prices. Additionally, seasonal energy price spikes, especially in regions that experience severe winters, can drive up production costs, influencing the overall pricing of BDO. Understanding these seasonal trends helps procurement heads plan more effectively for price fluctuations.
Several supply chain risks can impact the prices and availability of 1,4-Butanediol. Key risks include geopolitical tensions, natural disasters affecting production regions, and disruptions in shipping and logistics. For instance, production facility shutdowns or raw material shortages in major producing regions like China or the Middle East can result in supply constraints, driving up prices globally. Additionally, environmental regulations, such as China’s stringent emissions controls, can reduce output, causing price surges. Procurement heads should consider diversifying suppliers and exploring alternative regions to mitigate these risks.
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