Oxo-alcohols

Trading in the global oxo-alcohols market is likely to remain healthy in the short term, and most producers are experiencing an upturn in buying interest from the majority of downstream markets.

In Europe, healthy demand, low inventories and supply constraints have led to market tightness and price increases in n-butanol (NBA), isobutanol (IBA) and 2-ethylhexanol (2-EH). The upward trend could continue amid maintenance shutdowns and the start of the construction season. In the longer term, however, poor economic conditions and regulatory pressures could shrink demand from the key dioctyl phthalate (DOP) market.

The near-term outlook for the US oxo-alcohols market is positive, as demand for solvents and plasticizers continues to creep above the low levels seen in the previous two years. While sales of NBA, IBA and 2-EH are expected to increase in the next three months, producer margins are likely to be squeezed by a rise in the cost of propylene.

In the Asia-Pacific market, falling values in the key China market and ample availability continue to suppress the appetite of buyers for fresh material. However, prices could rebound because the extended shutdown of Taiwan-based NBA major Formosa Plastics Corp’s Mailiao-based facility is likely to reduce the number of spot cargoes in the near term.