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

As of late November 2012, the butanol market in Asia appeared somewhat subdued, with prices continuing their downward trajectory. Analysts predict this downtrend will persist in the near future. The market's sluggishness can be attributed to declining raw material costs, which have weighed heavily on the industry. Additionally, loose liquidity and a bearish trading atmosphere have further dampened sentiment. Merchants have been slow to move their inventories, leading to marginal price drops. Currently, China’s CIF n-butanol stands at $1,429-$1,431 per ton, a decrease of $10 per ton from last week. In Southeast Asia, the price is $1,414-$1,416 per ton, down $2 per ton from the previous week. The European market also remains under pressure, with Northwest Europe’s FOB n-butanol at $1,305-$1,310 per ton, a drop of $7.5 per ton from last week. Meanwhile, the U.S. market remains stable, with the U.S. Gulf n-butanol priced at $1,535-$1,545 per ton, unchanged from last week. Domestically, Chinese butanol plants have been operating steadily, though prices remain largely flat. Jihua’s normal butanol plant continues to operate normally, maintaining regular shipments with low inventory levels. The main factory price remains at RMB 10,700-RMB 10,900 per ton, unchanged from last week. Similarly, Qilu’s butanol plant is running at full capacity, with strong factory sales and low inventory. The quoted price is RMB 10,900-RMB 11,000 per ton, consistent with last week. Daqing Petrochemical’s butanol plant is also fully operational, focusing primarily on contract customers, with prices at RMB 10,700-RMB 10,900 per ton, unchanged from last week. Shandong Lihua Yi’s butanol plant is running at full capacity with smooth shipments, keeping prices steady at RMB 10,900-RMB 11,000 per ton. In East China, the butanol market has shown reduced confidence this week, with prices continuing to fall. The market experienced an oversupply, and transactions were sluggish. Merchants struggled to move their inventories, causing prices to drop further. The current mainstream offer is RMB 11,100-RMB 11,150 per ton, while actual transactions hover around RMB 11,050-RMB 11,100 per ton. In South China, sentiment in the n-butanol market remained subdued this week, with prices confined within a narrow range. Demand from downstream buyers was lackluster, with few active participants in the market. Traders maintained normal inventory levels, and prices saw minor fluctuations. The mainstream price stood at RMB 11,500-RMB 11,600 per ton, with actual negotiations ranging between RMB 11,400-RMB 11,500 per ton. In Northern China, the butanol market also weakened this week, with a slight price decline. The overall market mood was pessimistic, with downstream buyers entering cautiously. Trading volumes were low, and merchants moved their inventories slowly. The mainstream offer was RMB 11,100-RMB 11,200 per ton, with actual transactions occurring at RMB 11,000-RMB 11,100 per ton. In summary, the domestic butanol market has seen a gradual shift in focus. The downstream butyl ester market has continued to decline, reducing raw material purchases and diminishing market demand. Inventory pressures are mounting, particularly for lower-priced goods, and market sentiment remains gloomy. For the short term, the butanol market is expected to maintain its downward trajectory.