butyl glycol Pricing Assessment

Markets Covered:

Brazil

China

India

Saudi Arabia

France

Italy

Butyl Glycol Price Trend, Analysis and Forecast

Global prices for Butyl Glycol are primarily influenced by major exporting countries like the USA, Saudi Arabia, and France. In Q1 and Q2 of 2024, geopolitical events, including rising tensions in the Middle East and trade route disruptions, significantly impacted the market. Additionally, feedstocks such as Ethylene Oxide and n-butanol have shown an upward trend during the first half of 2024, contributing to increased production costs and price fluctuations for Butyl Glycol.

In Q1 of 2024, Butyl Glycol prices in North America rose by 9% compared to previous quarter, driven by strong demand from the paint and coating industry. This increase was further supported by rising feedstock prices for n-butanol and Ethylene Oxide. Additionally, prolonged cargo holding times due to tensions in the Red Sea led to higher order volumes, while insurance costs significantly impacted importing countries. The Middle East experienced an 18% price increase due to rising demand and supply shortages caused by geopolitical tensions, alongside escalating insurance costs. Similarly, the European market followed the global trend, increasing by 6% as demand within the European Union rose, compounded by higher transportation costs and rising feedstock prices.

In Q2 of 2024, the North American and European markets continued their upward momentum, with Butyl Glycol prices rising by 5% and 8%, respectively, compared to the previous quarter. This growth was fuelled by rising feedstock prices and increased demand from the East Asian market. Conversely, the Middle East experienced a decline in demand, while supply improved, leading to a shift in the supply-demand equilibrium that resulted in a 3.5% decrease in prices from the previous quarter.

In Q3 of 2024, the North American market is experiencing a bullish trend, largely driven by rising Ethylene Oxide prices, a key feedstock, and strong demand from East Asia, particularly Singapore. Meanwhile, the European market has shown signs of stabilization in the early phase of Q3 and is expected to maintain equilibrium in supply and demand throughout the second half. Prices in the Middle East have also stabilized amid ongoing geopolitical tensions, which have become the new normal, and are likely to remain steady as the quarter progresses.

Looking ahead to Q4 2024 and beyond, the U.S. Gulf Coast is expected to add 1.5 million metric tons of ethylene production annually, which may help stabilize prices. Despite this, the market is projected to remain volatile through 2030, influenced by factors such as geopolitical developments, supply chain adjustments, and evolving demand dynamics.

Why Price-Watch?

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

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

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Historically, several events have caused significant fluctuations in butyl glycol prices

Russia-Ukraine Conflict (2022-Present): The Russia-Ukraine war has disrupted supply chains and raised energy costs, leading to increased prices for Butyl Glycol globally. The conflict has created uncertainty in chemical markets, affecting production and transportation costs, further driving price volatility.

COVID-19 Pandemic (2020): The COVID-19 pandemic significantly impacted Butyl Glycol prices by causing production halts and supply chain disruptions. Initially, demand dropped, leading to price fluctuations. As markets stabilized, recovery has been uneven, influenced by ongoing uncertainties in various industries.

Geopolitical Tensions and Protectionist Policies: Trade tariffs imposed by regions such as the United States, China, the European Union, India, and Brazil have disrupted supply chains and increased costs for Butyl Glycol. These policies have led to price fluctuations and reduced availability in global markets.

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

Methodology and Specifications

Price-Watch butyl glycol Pricing Assessment Research Methodology

Data Collection and Sources

Real-Time Market Data: Price-Watch 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 Butyl Glycol production hubs. This ground-level intelligence is crucial for understanding localized market dynamics.

Supply Chain Monitoring: We track the entire Butyl Glycol supply chain, from raw material availability (e.g., ethylene oxide. n-butanol) to production and distribution channels. This includes monitoring feedstock prices, production capacities, and transportation logistics.

Event Tracking and Impact Analysis

Geopolitical Tensions: Price-Watch continuously monitors global geopolitical developments, such as conflicts or trade disputes, which can significantly impact Butyl Glycol 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 Butyl Glycol 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: Price-Watch evaluates macroeconomic trends, including global economic growth, inflation rates, and sector-specific demand (e.g., Paints and Coatings, Adhesives), to predict shifts in Butyl Glycol demand and corresponding price movements.

Production Capacity and Supply Analysis

Current Production Monitoring: We maintain a comprehensive database of global Butyl Glycol 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 Butyl Glycol 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: Price-Watch provides in-depth analysis of demand trends across key sectors, including Paints and Coatings, Adhesives, and Pharmaceuticals. 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 Butyl Glycol pricing. This includes understanding the impact of shifts in manufacturing bases, trade policies, and environmental regulations.

Pricing Model Development

Dynamic Pricing Models: Price-Watch utilizes advanced econometric models to forecast Butyl Glycol 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: Price-Watch 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 Price-Watch delivers the most accurate, timely, and actionable Butyl Glycol pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.

Specifications

Molecular Weight[g/mol]

118.17 g/mol

CAS No

111-76-2

HS Code

29094300

Molecular Formula

C6H14O2

butyl glycol

Butyl Glycol (C₄H₉OH) is a versatile solvent used in paints, coatings, cleaning products, and personal care formulations. It is produced from petrochemical feedstocks, primarily derived from Propylene through hydroformylation and hydrogenation processes. Known for its low volatility and excellent solubility.

Packaging Type

Drums

Grades Covered

Industrial

Incoterms Used

FOB Dammam Port, CIF Santos Saudi Arabia, CIF Shanghai Saudi Arabia, CIF Nhava Sheva Saudi Arabia, FOB Marseille-Fos Port, FD Genoa Port, CIF Santos _Brazil

Synonym

Ethylene Glycol Monobutyl Ether, 2-Butoxyethanol

Price-Watch Quotation Terms:

25-28 MT

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.

S.no	Properties	Unit	Value
1	Purity	% m/m	99 min
2	Colour (Pt-Cobalt)		10 max
3	Density @ 20°C	g/ml	0.898 – 0.902
4	Water Content	% m/m	0.2 max
5	Distillation, IBP	°C	166 min
6	Distillation, DP	°C	173.0 max
7	Acidity as acetic acid	% m/m	0.005 max
8	SG @ 20°C		0.899 – 0.904
9	Refractive Index @ 20°C		1.419 -1.420

Applications

Butyl Glycol is primarily used as a versatile feedstock and intermediate in the production of various chemicals. It serves as a key ingredient in the manufacturing of plasticizers, which enhance the flexibility of plastics, and is also used in the production of surfactants and emulsifiers for cleaning products. Additionally, Butyl Glycol is utilized in the formulation of paints and coatings, improving their flow and levelling properties. Its role extends to the textile industry, where it acts as a solvent for dyes and finishing agents. Furthermore, Butyl Glycol is employed in the production of adhesives and sealants, contributing to their effectiveness and performance in various applications.

Disclaimer

Butyl Glycol price provided by Price-Watch 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 butyl glycol. Price-Watch 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

What factors influence the pricing of Butyl Glycol? +

The pricing of Butyl Glycol is influenced by several key factors. First, the cost of raw materials, particularly the feedstocks used in its production, such as propylene and butylene, plays a significant role. Fluctuations in these raw material prices can directly impact Butyl Glycol pricing. Additionally, supply chain dynamics, including transportation costs and production capacity, are critical factors. Demand from key sectors—such as paints and coatings, personal care, and cleaning products—also affects pricing; increased demand can lead to higher costs. Lastly, global economic conditions and regulatory changes can introduce further volatility in Butyl Glycol prices.

How can we secure competitive pricing for Butyl Glycol in our procurement strategy? +

To secure competitive pricing for Butyl Glycol, procurement heads should adopt a proactive approach. Establishing strong relationships with multiple suppliers can foster competition, leading to better pricing terms. Conducting regular market analyses to track pricing trends and benchmarks is essential for informed decision-making. Exploring long-term contracts can help lock in favorable prices and provide stability against market fluctuations. Additionally, considering alternative sourcing options, such as regional suppliers, may yield cost advantages. Maintaining flexibility in procurement strategies will enable teams to adapt to changing market conditions effectively.

What are the risks associated with fluctuations in Butyl Glycol pricing, and how can we mitigate them? +

Fluctuations in Butyl Glycol pricing pose several risks, including budget overruns and increased production costs that can affect overall profitability. To mitigate these risks, procurement heads can implement strategic measures such as entering into hedging contracts to protect against price spikes in raw materials. Diversifying the supplier base reduces reliance on any single source, enhancing resilience against market volatility. Maintaining optimal inventory levels can also serve as a buffer against sudden price increases, allowing companies to capitalize on lower prices when they occur. Additionally, continuous monitoring of market trends and economic indicators will enable proactive adjustments to procurement strategies.