Construction Start Boosts Costs; January Isooctanol Prices Show Volatile Rise

January 16th, News

January isooctanol prices fluctuated and increased in China

According to the commodity market analysis system, as of January 16th, the price of 2-ethylhexanol was 7033.33 CNY/ton, which is a 1.69% increase from the price of 6916.67 CNY/ton on January 1st. The maintenance of 2-ethylhexanol production facilities in China has been completed, and the operating load of 2-ethylhexanol plants has increased, with the operating rate at 95%. This ensures an adequate supply of 2-ethylhexanol. The strong rise in propylene prices has increased the cost support for 2-ethylhexanol. Additionally, the fluctuating rise in plasticizer prices has strengthened the demand support from downstream users of 2-ethylhexanol. With the increase in costs and supply, and weaker downstream support, the price of 2-ethylhexanol has been fluctuating upwards.

Isobutanol manufacturers in China have increased their production.

Isobutanol manufacturers have increased production, with a Chinese isobutanol manufacturer operating rate of around 95%, and a weekly isobutanol production in China of 76,000 tons. The increase in isobutanol production has led to a greater supply, weakening the upward momentum for isobutanol prices.

Raw material propylene costs have risen sharply.

According to the commodity market analysis system, as of January 16, the propylene price was 6,147.67 CNY/ton, a significant increase from the January 1 propylene price of 5,717.67 CNY/ton, with a price increase of 7.52%. In January, the propylene price increased significantly, leading to greater support from raw material prices. This, in turn, has led to an increase in the cost of isooctanol, resulting in stronger support for the rise in isooctanol prices.

Downstream plasticizer DOP prices fluctuate and rise in China

According to the commodity market analysis system, as of January 16, the DOP price was 7492.50 CNY/ton, an increase of 2.27% from the DOP price of 7325.84 CNY/ton on January 1. The cost of DOP has risen, and the operating load of DOP plasticizer enterprises in China remains stable, with an operating rate of around 63%. DOP production is stable, and there is still support for the demand for 2-ethylhexanol, with a significant increase in the price of 2-ethylhexanol providing substantial support.

Future Market Expectation

The analyst specializing in octanol product data believes that, from a cost perspective, the substantial rise in the price of raw material propylene has intensified the upward momentum for iso-octanol. On the supply side, iso-octanol producers have increased their operating rates, leading to a rise in iso-octanol supply. On the demand side, DOP manufacturers maintain stable operating rates and consistent DOP production, ensuring continued support for iso-octanol demand. Looking ahead, with increasing cost support for iso-octanol and rising supply coupled with limited demand support, iso-octanol faces significant downward pressure, though some upward support remains. Therefore, we expect iso-octanol prices to fluctuate and gradually stabilize in the near term.