N-butanol market volatility space narrowed

Price trend chart of N-butanol in China from 2015 to 2021

After entering November, the domestic n-butanol market volatility space significantly narrowed, the overall trend of shock down. As of November 24, jiangsu exported 9,700 CNY/ton, down 1,100 CNY/ton compared with the beginning of this month. This month the factory to reduce the warehouse shipment mainly, suppress the n-butanol market activity. In the middle of the buying bargain-hunting.

But because the two downstream butyl acrylate and butyl acetate are in the traditional demand off season, the market volume is lack of continuity, the market center of gravity continued downward trend. Anqing Shuguang n-butanol plant stopped for maintenance as scheduled in the middle of this month, while the plant in northwest China gradually increased to high-load production to supplement shuguang's supply loss.

In the short term, the overall supply of the domestic n-butanol market has little change. Last week, the focus of the n-butanol market rebounded, but due to the lack of continuity of downstream covering positions, the high price of n-butanol lack of demand support, this week the market focus of pressure down.

The overall import level of n-butanol in 2021 is low, with 101,700 tons of n-butanol imported from January to October, down 130,400 tons compared with the same period last year. Imports of n-butanol in October were 70,300 tons, down 11,700 tons from September and 12,400 tons from last year.

The downstream products of n-butanol all showed a downward trend, and the operating rates of the three downstream units in November all increased compared with October. As of November 24, the largest downstream butyl acrylate market fell by 2700 CNY/ton in this month, butyl acrylate market shipment resistance is large, in this month's downward trend, due to the overall shipment situation is not good, part of the butyl acrylate plant operating rate is not satisfied, butyl acrylate plant overall at a medium and high level.

Butyl acetate average operating rate is low, product prices fall, the industry profitability is weak. The profit space of DBP product is still good, and the price of the product dropped by 1500 CNY/ton this month. The three major downstream market centers declined significantly, restricting the buying pace of raw material spot procurement, downstream users are more bargain filling positions, large order procurement is more cautious.

At the end of the year, n-butanol factory trading initiative has weakened. Except for the overhaul of Anqing Shuguang unit, other units have maintained high load production, and the overall supply side is sufficient. Due to the recent lackluster performance of downstream demand, market activity has declined.

N-butanol manufacturers are currently based on low inventory control, and the market hype atmosphere is reduced. In view of the recent low inventory operation of n-butanol factories, the market activity has been weakened. It is expected that the n-butanol market will run in an interval of volatility in the near future, and the overall trend is weak.