On October 26th, the market price of n-butanol increased, with an average market price of 7790 yuan/ton, an increase of 1.39% compared to the previous working day. There are two main reasons for the price increase.

1. Against the backdrop of negative factors such as the inverted cost of downstream propylene glycol and the temporary delay in purchasing spot goods, two n-butanol factories in Shandong and northwest regions have been in a fierce competition to ship goods, leading to a continuous decline in market prices. Until this Wednesday, Shandong’s large factories increased their trading volume, while n-butanol in northwest regions traded at a premium, indicating signs of rebound in the market.

1. Downstream plasticizers and butyl acetate manufacturers’ shipments have improved, coupled with low raw material inventory in factories, resulting in a certain high demand in the market. Downstream manufacturers have a high purchasing sentiment when entering the market, and large factories in the northwest region and Shandong have both sold at a premium, thereby driving up the price of n-butanol in the market.

A certain n-butanol plant in Ningxia is scheduled for maintenance next week, but due to its limited daily production, its impact on the market is limited. At present, some downstream procurement enthusiasm is still good, and mainstream manufacturers of n-butanol have smooth shipments, and there is still room for short-term market prices to rise. However, the poor downstream demand of the main force has constrained the growth of the n-butanol market. The restart time of a certain device in Sichuan is ahead of schedule, leading to an increase in market supply, and there may be a risk of price decline in the medium to long term market.

The DBP industry continues to be in a stable and profitable state, but overall downstream demand is not high, and there is a high possibility that short-term devices will maintain their current load. It is expected that the DBP market demand will remain stable next week. At present, there has been no significant adjustment to the operation of the equipment in the vinegar production plant, and there will be no maintenance reports next week, resulting in limited market demand fluctuations. The main downstream costs are inverted, and enterprises mainly focus on executing contracts, temporarily delaying spot purchases.

Crude oil and propane prices fluctuate at high levels, and cost support still exists. The main downstream polypropylene remains weak and on the edge of profit and loss, with limited support for the propylene market. However, other downstream performance was decent, with propylene manufacturers’ shipments showing good performance for two consecutive days, providing significant support for price trends, and manufacturers also holding a willingness to support prices. It is expected that the mainstream domestic propylene market prices will be strong and consolidation in the short term.

Overall, the propylene market is relatively strong in consolidation, and there is still a strong demand in the downstream market. The shipment of n-butanol manufacturers is smooth, and there is still room for short-term market prices to rise. However, the weak demand for propylene glycol in the main downstream has certain constraints on market growth. It is expected that in the short term, the trading focus of the n-butanol market will shift towards the high-end, with an increase of around 200 to 400 yuan/ton.