The domestic n-butanol market in China has recently experienced a downward trend, driven by weakening production costs and sluggish downstream demand. The commissioning of new production facilities has raised concerns about additional supply, while falling propylene prices have weakened cost support. Meanwhile, cautious purchasing activity and rising inventory pressure have further weighed on market sentiment, pushing transaction prices lower.

I. n-Butanol Prices Continue to Decline

Domestic n-butanol prices have continued to fall, with high-end offers gradually disappearing. The commissioning of new production facilities is expected to increase market supply, intensifying competition among suppliers.

On the demand side, downstream buyers have adopted a cautious purchasing strategy, mainly purchasing to meet immediate production needs. This has reduced overall market activity and slowed sales at production plants. As inventory pressure increases, some producers have offered discounts to stimulate sales, putting further downward pressure on market prices.

Meanwhile, the significant decline in propylene prices has reduced n-butanol production costs and weakened cost-side support. As major downstream industries gradually enter their traditional off-season, demand for n-butanol is also showing signs of weakening.

II. Production Adjustments and Market Supply

Several domestic n-butanol production facilities, including those operated by Daqing Petrochemical, Jilin Petrochemical, Anhui Shuguang, and Shaanxi Yanchang, remain under maintenance shutdowns.

In addition, weak sales, declining prices, and narrowing profit margins have prompted some producers, including Shandong Luxi and Jiangsu Huachang, to reduce operating rates.

Despite these maintenance shutdowns and production adjustments, overall domestic n-butanol capacity utilization remains relatively high, and spot availability remains sufficient. This has limited the impact of reduced production on market supply, leaving the market under pressure from an imbalance between supply and demand.

III. Falling Propylene Prices Weaken Cost Support

Recent fluctuations in the propylene market have further influenced n-butanol price movements. Although some propylene production facilities have resumed operations following maintenance, downstream demand has weakened after the previous round of price increases. Most buyers remain price-sensitive and are purchasing cautiously, resulting in growing inventory pressure across the supply chain.

Meanwhile, maintenance at some propylene oxide plants in Dongying has intensified competition for downstream sales and weighed on overall transaction activity.

The sustained decline in propylene prices has lowered n-butanol production costs, weakening the market's cost support. Combined with sufficient n-butanol supply and subdued downstream demand, this has contributed to lower transaction prices and a more cautious market outlook.

IV. n-Butanol Market Outlook

Looking ahead, the Chinese n-butanol market is expected to remain under pressure from supply-demand imbalances. Additional production capacity may increase supply, while lower downstream operating rates and seasonal demand weakness could further limit purchasing activity.

Market participants are likely to remain cautious, with downstream buyers focusing on immediate requirements and selectively purchasing at lower prices. High-end offers may continue to face resistance, while transactions are expected to concentrate toward the lower end of the price range.

Cost-side developments, particularly changes in propylene prices, will remain an important factor influencing n-butanol market movements. Overall, the domestic n-butanol market is likely to experience fluctuating consolidation in the near term, with price trends depending on changes in raw material costs, production operating rates, inventory levels, and downstream demand.