Supply Reduction Leads to Rapid Increase in n-Butanol Market

December 4 news

According to the commodity market analysis system, as of December 4, 2025, the reference price for n-butanol in Shandong, China, is 5,670 CNY per ton. Compared to November 30, 2025 (when the reference price for n-butanol was 5,166 CNY per ton), the price has increased by 504 CNY per ton, a price increase of 9.74%.

In the first week of December, the n-butanol market in Shandong, China, welcomed a rapid recovery.

From the commodity market analysis system, it can be seen that in the first week of December, the overall butanol market trend in Shandong, China, showed a significant upward movement. Butanol factories and suppliers in Shandong, China, actively raised the selling prices of butanol, with a cumulative increase of around 400-700 CNY per ton within the week. As of December 4th, the market price of butanol in Shandong, China, was around 5,450 to 5,800 CNY per ton, with a cumulative price increase of over 9% in two days.

Market Factor Analysis

Supply aspect: Entering December, the n-butanol plants in Shandong region of China are undergoing concentrated production cuts, leading to a noticeable reduction in the overall supply of n-butanol. The inventory at the supply end is low, and the market's spot supply is tight, providing strong support to the n-butanol market.

Demand Side: Currently, the self-sufficiency rate of raw materials among downstream users of n-butanol has declined, boosting their willingness to procure raw materials. As a result, overall external procurement volumes have increased, and inquiry volumes have risen. Consequently, demand-side support for market prices has also improved somewhat.

Cost Aspect: Recently, the market for propylene—the key raw material—has been experiencing volatile upward trends. Support from the cost side continues to underpin n-butanol prices. As of December 4, the benchmark price for propylene stood at 6,190.75 CNY per ton, representing a 0.52% increase compared to the beginning of this month (6,180.75 CNY per ton).

Future Market Forecast

Currently, the overall trading atmosphere in the n-butanol market in Shandong region of China is good, with improved sentiment among industry players. The transaction focus of the n-butanol market has shifted to the higher end. N-butanol data analysts predict that in the short term, the n-butanol market trend will mainly be strong. Specific developments still require close attention to changes in supply and demand dynamics.