Costs Decrease, Weak Demand, October Isobutanol Prices Fluctuate and Decline in China

October 31st News

October iso-octanol prices fluctuated and declined in China.

According to the commodity market analysis system, as of October 31, the price of 2-ethylhexanol was 5,950 CNY per ton, a fluctuating decline from the price of 6,666.67 CNY per ton on October 1, marking the lowest price since May 2020. The price of 2-ethylhexanol has fallen for four consecutive months, with a 10.75% decrease in October, the largest decline of the year.

According to the commodity market analysis system, from the weekly K-bar chart of 2-ethylhexanol, it can be seen that since August, the price of 2-ethylhexanol has been continuously declining, and the price decrease of 2-ethylhexanol in October intensified. In October, 2-ethylhexanol production facilities in China underwent maintenance, leading to a decrease in the operating rate of 2-ethylhexanol equipment, with the operating rate dropping below 90%, resulting in a reduction in the supply of 2-ethylhexanol; the price of propylene fell, leading to a decrease in the cost of 2-ethylhexanol; the price of plasticizers also fell, causing weak demand for 2-ethylhexanol. The decline in costs, coupled with weak supply and demand, led to a significant drop in the price of 2-ethylhexanol.

Raw Material Propylene Costs Decline

According to the commodity market analysis system, as of October 31, the propylene price in China was 6,058.25 CNY/ton, a fluctuating decline from the propylene price of 6,543.25 CNY/ton on October 1. In October, the propylene price in China fell significantly, reaching a new low for the year; the propylene price decreased by 7.64% in October, marking the largest monthly price decrease for the year. The decline in the raw material propylene price led to a reduction in the cost of 2-ethylhexanol, increasing the pressure for a decrease in the 2-ethylhexanol price.

Downstream plasticizer DOP prices fluctuate and decline in China

According to the commodity market analysis system, as of October 31, the DOP price was 7009.16 CNY/ton, a fluctuating decline from the DOP price of 7367.50 CNY/ton on October 1, with a price decrease of 4.86%. In October, the DOP price fluctuated downward. The operating load of DOP enterprises in China was less than 60%, the operating rate decreased, DOP production decreased, and the support for isooctanol demand decreased, leading to a significant downward pressure on the isooctanol price.

Future Market Expectations

The 2-ethylhexanol product data analyst believes that in terms of cost, the price of propylene has fallen, and the price of raw materials has decreased, increasing the downward pressure on 2-ethylhexanol. In terms of supply, the operating rate of 2-ethylhexanol enterprises in China is less than 90%, and the operating rate of 2-ethylhexanol enterprises has declined, leading to a decrease in the supply of 2-ethylhexanol. In terms of demand, the price of DOP is fluctuating and falling, and the operating rate of DOP enterprises in China has slightly decreased, resulting in a decline in DOP production and a reduction in the support for 2-ethylhexanol demand. Overall, with the cost of 2-ethylhexanol decreasing and both supply and demand being weak, the downward pressure on 2-ethylhexanol is increasing, and the price of 2-ethylhexanol is fluctuating and falling.

In the future, with the decline in propylene prices and insufficient cost support for 2-ethylhexanol, the operating rates of 2-ethylhexanol enterprises in China have decreased, while the operating rates of DOP enterprises have increased. The supply of 2-ethylhexanol is decreasing, and demand is rising. Additionally, as the price of 2-ethylhexanol approaches its historical low, there is limited room for further decline and a strong intention to increase. It is expected that the price of 2-ethylhexanol in China will stabilize and consolidate.