In Q1 2024, Isobutyric Acid prices in China experienced a decline in prices of approximately 4.1%. An increase in production capacity among local chemical manufacturers contributed significantly to a greater supply in the market, which exerted downward pressure on prices. Additionally, stable or decreasing feedstock prices, such as those for propylene and iso-butyraldehyde, likely reduced production costs for Iso-butyric Acid, allowing manufacturers to pass on savings to consumers. Furthermore, certain end-use sectors, including flavours, fragrances, and coatings, may have witnessed a temporary slowdown in demand, leading to a surplus in supply.
In Q2 2024, Isobutyric Acid prices increased by approximately 5.9% from Q1 2024, primarily due to a rebound in demand across various end-use sectors, particularly in the flavours, fragrances, and coatings industries. After a period of reduced activity in the first quarter, manufacturers began to restock inventories in anticipation of higher seasonal demand. Additionally, any supply constraints resulting from production outages or maintenance activities in key manufacturing facilities may have contributed to tighter market conditions, prompting price increases.
For Q3 2024, an upward trend is expected for Iso Butyric Acid prices, driven by several key factors. Continued recovery in demand from industries such as flavours, fragrances, and coatings are anticipated to support strong consumption, particularly as seasonal demand peaks during the summer months. Additionally, any adjustments in the supply chain, including potential disruptions or maintenance activities in production facilities, could create tighter supply conditions, leading to price increases as manufacturers respond to the dynamics of the market.
Q4 2024 indicates a potential stabilization or slight decline in pricing for Iso Butyric Acid, influenced by various market dynamics. As the year ends, demand from end-use sectors such as flavours, fragrances, and coatings are expected to soften slightly following the peak in previous quarters. This seasonal slowdown in demand, combined with steady production levels, may exert downward pressure on prices as manufacturers adjust to changing market conditions.