In the first half of 2024, Tertiary Butyl Alcohol (TBA) prices have decreased due to oversupply and weaker demand, with key producers in Japan and China playing a significant role in the market. Japan’s production remains strong, with several major chemical producers maintaining steady output levels. China, as one of the largest global producers of TBA, continues to have a substantial market share, with its industry contributing significantly to the overall supply. The combination of high production levels in these regions, along with subdued demand from downstream sectors like paints, coatings, and fuel additives, has led to an oversupply, putting downward pressure on TBA prices.
In Q1 of 2024, Tertiary Butyl Alcohol (TBA) prices showed a bearish trend compared to Q3 2023, primarily driven by an oversupply of the product and weaker demand across key regions. In China, prices fell by 10%, reflecting continued high production levels and reduced consumption from downstream sectors such as paints and coatings. Similarly, in Japan, prices decreased by 7%, as demand remained subdued due to slower economic growth and weaker industrial activity. The overall market was further pressured by stable feedstock costs, particularly for isobutene, which alleviated production cost pressures but did not stimulate demand. This combination of excess supply and lacklustre demand led to a price decline in both China and Japan, which also affected importing countries like Vietnam and India, where lower demand for TBA from end-user industries further exacerbated the price drop.
In Q2 2024, Tertiary Butyl Alcohol (TBA) prices showed a bullish recovery in China, rising by 6%. This recovery was driven by a rebound in demand from downstream sectors such as paints, coatings, and industrial solvents, as economic activity picked up and production resumed after seasonal slowdowns. Additionally, some tightening in supply due to production adjustments helped to support prices. In Japan, prices stabilized at the upper end, as the market found balance between supply and demand. Despite ongoing economic challenges, the stabilization was fuelled by steady demand from key industries, along with more favourable feedstock pricing for isobutene. The combination of these factors helped to stabilize prices after the bearish trend in Q1, leading to moderate increases in China and a firming of prices in Japan.
In Q3 of 2024, Tertiary Butyl Alcohol (TBA) prices surged in China by 4% and in Japan by 8.4%, driven by supply constraints, maintenance shutdowns, and increased demand across industries like automotive and chemicals. This surge significantly impacted importing nations such as Vietnam and India. Both countries, which rely heavily on imports for TBA, faced higher procurement costs, leading to increased production expenses for their downstream industries, including paints, coatings, and adhesives. As a result, manufacturers in these nations experienced tighter margins, potentially passing on higher costs to consumers, which could slow economic growth in affected sectors.
In Q4 2024, Tertiary Butyl Alcohol prices are expected to stabilize due to modest demand recovery in the textile and pharmaceutical sectors. Supply chain adjustments may alleviate constraints, but geopolitical tensions could create volatility. Overall, prices are likely to remain stable yet sensitive to ongoing market developments.