1,4 butanediol Pricing Assessment

Markets Covered:

China

Taiwan

India

Turkey

Vietnam

Brazil

1,4 Butanediol Price Trend, Analysis and Forecast

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. 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 Q2 2024, BDO prices continued to fall, declining by approximately 4% from Q1. 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.

As of August 2024, BDO prices in China further declined by 8%. For Q3 2024, 1,4-Butanediol (BDO) prices are expected to remain under pressure due to weak demand in key regions, where sluggish downstream consumption from industries like textiles and construction has been observed. Additionally, as supply chains stabilize, including the restart of previously maintained production facilities, the supply-side pressure will likely continue to weigh on prices.

Looking ahead to Q4 2024 and beyond, the demand for 1,4-butanediol (BDO) is expected to increase due to several key factors. First, the industrial sector, especially in regions like Asia and Europe, is projected to see a rebound in downstream applications, particularly in plastics, automotive, and textile industries. As economic activity picks up, sectors that rely on BDO for producing spandex, polyurethanes, and biodegradable plastics will likely drive higher demand. Moreover, the trend toward sustainable production methods, such as bio-BDO, is gaining traction, with companies investing in environmentally friendly alternatives. This shift is expected to enhance market demand, especially as more industries adopt sustainable practices.

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is your trusted resource for tracking global 1,4 butanediol price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the 1,4 butanediol market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, keeps you fully informed of market dynamics.

In addition, provides detailed forecasts and updates on production capacities, enabling you to anticipate market changes and make well-informed decisions. With , you gain a competitive edge in understanding all the elements that influence 1,4 butanediol prices worldwide. Stay ahead of the curve with ’s reliable, accurate, and timely 1,4 butanediol market data.

Track 's 1,4 butanediol price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.

Historically, several events have caused significant fluctuations in 1,4 butanediol prices

2017: Environmental Regulations in China
China implemented stricter environmental regulations, which led to the closure of several small and medium-sized chemical plants. This supply reduction caused a short-term increase in BDO prices, especially in Asia, as the market adjusted to the reduced capacity. The tightened supply drove prices higher temporarily as manufacturers scrambled to meet demand.

2020: COVID-19 Pandemic
The COVID-19 pandemic caused unprecedented disruptions to global supply chains, severely impacting the BDO market. Lockdowns, factory closures, and reduced industrial activity led to a sharp drop in demand, particularly in sectors like automotive, textiles, and plastics. BDO prices fell significantly during the first half of 2020. However, the demand for sanitizers and packaging materials helped stabilize prices later in the year.

2021–2022: Supply Chain Disruptions and Raw Material Shortages
As the global economy began to recover from the pandemic, supply chain disruptions, particularly in Asia, caused raw material shortages. The surge in demand for downstream products like spandex, plastics, and solvents led to increased BDO prices. Higher crude oil and natural gas prices also contributed to this rise, as these are key feedstocks for BDO production.

These events underscore the BDO market’s vulnerability to global disruptions and highlight the need for continuous monitoring of supply-demand dynamics.

Methodology and Specifications

1,4 butanediol Pricing Assessment Research Methodology

Data Collection and Sources

Real-Time Market Data: aggregates real-time pricing data from a diverse range of sources, including global commodity exchanges, industry reports, and proprietary databases. This ensures that our assessments reflect the most current market conditions.

On-the-Ground Intelligence: Our team gathers insights directly from key market participants, including producers, suppliers, traders, and end-users, across major BDO production hubs. This ground-level intelligence is crucial for understanding localized market dynamics.

Supply Chain Monitoring: We track the entire BDO supply chain, from raw material availability to production and distribution channels. This includes monitoring feedstock prices, production capacities, and transportation logistics.

Event Tracking and Impact Analysis

Geopolitical Tensions: continuously monitors global geopolitical developments, such as conflicts or trade disputes, which can significantly impact BDO prices. Our analysis includes potential disruptions to supply chains and their immediate and long-term effects on pricing.

Natural Disasters and Climate Events: We assess the impact of natural disasters, such as hurricanes or winter storms, on BDO production facilities, particularly in vulnerable regions like the U.S. Gulf Coast. These events are factored into our price forecasts and supply outlooks.

Economic Shifts: evaluates macroeconomic trends, including global economic growth, inflation rates, and sector-specific demand (e.g., automotive, packaging), to predict shifts in BDO demand and corresponding price movements.

Production Capacity and Supply Analysis

Current Production Monitoring: We maintain a comprehensive database of global BDO production facilities, tracking their operational status, maintenance schedules, and output levels. This allows us to assess current supply availability accurately.

Future Capacity Projections: Our research includes detailed forecasts of upcoming BDO production capacities, factoring in new plant constructions, expansions, and technological advancements. This helps in predicting future supply trends and potential price stabilization.

Demand Forecasting

Sectoral Demand Analysis: provides in-depth analysis of demand trends across key sectors, including packaging, automotive, and construction. We track year-on-year demand growth and project future consumption patterns based on economic indicators and industry developments.

Global Demand Dynamics: Our methodology considers regional demand variations and how they influence global BDO pricing. This includes understanding the impact of shifts in manufacturing bases, trade policies, and environmental regulations.

Pricing Model Development

Dynamic Pricing Models: utilizes advanced econometric models to forecast BDO prices, incorporating real-time data, historical trends, and projected market conditions. Our models are continuously refined to enhance accuracy and predictive power.

Scenario Analysis: We conduct scenario-based assessments to evaluate potential future market conditions. This includes best-case, worst-case, and most likely scenarios, helping our clients prepare for a range of market outcomes.

Reporting and Client Support

Comprehensive Reports: Our clients receive detailed reports that include current price assessments, future price forecasts, and in-depth analysis of market drivers. These reports are designed to be actionable, providing clear insights and recommendations.

Ongoing Support: offers continuous updates and personalized support to our clients, ensuring they have the most up-to-date information to make informed decisions. Our experts are available to discuss specific market developments and provide tailored advice.

This research methodology ensures that delivers the most accurate, timely, and actionable BDO pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.

Specifications

Molecular Weight[g/mol]

90.121

CAS No

110-63-4

HS Code

29051490

Molecular Formula

C4H10O2

1,4 butanediol

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.

Packaging Type

Drum

Grades Covered

Industrial Grade ( ≥ ≥ 99.5%purity)

Incoterms Used

FOB China, FOB Taiwan, CIF India (China), CIF India (Taiwan), CIF Turkey (China), CIF Vietnam (Taiwan), CIF Brazil (China), CIF Brazil (Taiwan)

Synonym

1,4-Butylene Glycol

Quotation Terms:

25-28 MT(Global), 10-15 MT(India)

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 (%)	$\geq$ 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.

Disclaimer

1,4 Butanediol price provided by is a base price and excludes VAT/Taxes, discounts, or offers. The information herein is accurate to the best of our knowledge as of the date indicated and is provided solely for the convenience of our customers as a reference for 1,4 butanediol. disclaims any warranties or representations regarding the accuracy of results derived from this information. It is the sole responsibility of the user to assess the suitability of the product for their specific application. This document does not constitute an endorsement to use the product in violation of any applicable patent rights.

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Frequently asked questions

How do fluctuations in crude oil prices impact 1,4-Butanediol (BDO) prices? +

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.

What seasonal factors contribute to the pricing volatility of 1,4-Butanediol? +

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.

What are the main supply chain risks that can affect 1,4-Butanediol prices and availability? +

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.