A brief description of the butanol market at the end of November

As of late November 2012, the Asian butanol market seemed rather subdued with prices continuing to edge downward. Analysts suggest that this downward trajectory may persist in the near future. The market has been significantly impacted by declining raw material costs, leading to a general pessimism among participants. Additionally, liquidity concerns have exacerbated the situation, resulting in sluggish trading activities and slow deliveries by traders. Prices have shown slight decreases across various regions. Currently, China’s n-butanol CIF stands at $1,429-$1,431 per ton, a drop of $10 per ton from last week. In Southeast Asia, butanol prices are at $1,414-$1,416 per ton, down $2 per ton from the previous week. The European butanol market also remains under pressure, with Northwest Europe’s n-butanol FOB price at $1,305-$1,310 per ton, a decrease of $7.5 per ton from the prior week. Meanwhile, the U.S. n-butanol market has stabilized, with Gulf Coast prices holding steady at $1,535-$1,545 per ton. Domestically, the butanol plants are operating without major disruptions, though prices remain steady. Jihua’s normal butanol plant is maintaining regular production, with smooth shipping and manageable inventory levels. Its主流price is between 10,700-10,900 yuan per ton, unchanged from last week. Similarly, Qilu butanol plant is running at full capacity, with strong sales to contracted customers and low inventory. Its主流quoted price is 10,900-11,000 yuan per ton, consistent with last week. Daqing Petrochemical’s butanol plant is also fully operational, with its main products destined for contractual buyers. The factory price remains at 10,700-10,900 yuan per ton, unchanged from last week. Shandong Lihua Yi butanol plant is producing at full capacity, with normal shipping and a stable price at 10,900-11,000 yuan per ton. In East China, the butanol market has shown less confidence this week, with prices continuing their descent. Although the market had adequate supply, trading activity remained lethargic. Traders struggled to move their stock efficiently, causing prices to fall further. The主流offer is now at 11,100-11,150 yuan per ton, while actual transactions hover around 11,050-11,100 yuan per ton. In South China, sentiment in the n-butanol market has been relatively quiet this week, with prices confined within a narrow band. Demand was lackluster throughout the week, with limited participation from downstream buyers. Trader inventories remained normal, though prices showed slight fluctuations. The主流price stood at 11,500-11,600 yuan per ton, with actual negotiations occurring at 11,400-11,500 yuan per ton. In Northern China, the butanol market has weakened slightly, with prices showing a modest decline. Market sentiment remains weak, with downstream buyers entering cautiously. Trading volumes were low, and shipments were slow. The主流offer is at 11,100-11,200 yuan per ton, with actual transactions at 11,000-11,100 yuan per ton. To summarize, the domestic butanol market appears to be gradually shifting focus. The downstream butyl ester market continues to decline, reducing raw material purchases and dampening overall market demand. Inventory pressures among traders are becoming apparent, with an increase in lower-end goods flooding the market. This has led to a more pessimistic market outlook, suggesting that the butanol market may continue its downward trend in the short term.