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May 20th, 2025

Butyric Acid Price Index: Market Analysis, Trend, News, Graph and Demand

The global butyric acid market experienced dynamic price movements in the first quarter of 2025, shaped by a complex mix of supply disruptions, feedstock price fluctuations, regional demand variations, and macroeconomic factors. Butyric acid, a short-chain fatty acid widely used in animal nutrition, pharmaceuticals, food flavoring, and chemical intermediates, showed varying pricing trends across key regions such as North America, Europe, and the Asia-Pacific. The overall market sentiment remained cautious due to underlying economic concerns and weak downstream demand, even as supply-side challenges temporarily supported price increases.

In North America, butyric acid prices witnessed a noticeable rise of approximately 8.3% during Q1 2025. This surge was primarily triggered by production constraints caused by extreme winter conditions, which disrupted supply chains and impacted refinery run rates. Despite relatively moderate demand from end-use industries, major producers like OQ Chemicals and Perstorp Oxo-AB implemented price hikes early in the quarter. January saw balanced inventories and stable feedstock prices, particularly for propylene, which helped contain production costs. However, demand remained underwhelming due to weak consumption from the animal feed sector, which was adversely affected by declining corn yields. The food and flavoring industries also registered lower activity as consumer confidence fell amid broader economic uncertainty. In February, a severe winter storm along the U.S. Gulf Coast created a bottleneck in propylene supply, tightening the availability of butyric acid and prompting further price hikes. Export activity showed signs of recovery with increased railcar loadings, which helped reduce excess inventories and reinforced upward price pressure. Nevertheless, downstream demand remained sluggish, with limited improvement in feed and food sectors. By March, refinery outages continued to constrain output, sustaining supply tightness. However, lower transportation costs and cautious downstream procurement behavior kept price levels relatively stable. Demand across major applications remained subdued, highlighting persistent weakness in the market despite earlier gains.

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In Europe, the butyric acid market posted a modest 2.6% price increase in the first quarter, with gains largely driven by production issues and rising feedstock costs. The quarter began on a bearish note in January, with prices falling around 2% as abundant inventories and rollover pricing dominated. Producers attempted to raise prices, but post-holiday sluggishness and logistical disruptions, such as port delays in Hamburg, muted the effect of these efforts. The animal feed industry showed only modest growth in some European regions, while outbreaks of African swine fever and tightening environmental regulations continued to curb demand. The chemical intermediate segment remained under pressure due to low export activity and sustained contraction in industrial production. February brought higher production costs as propylene prices climbed in response to constrained supply, particularly due to ongoing strikes at the Port of Le Havre, which further delayed shipments. Despite these supply-side issues, the market remained well-stocked with leftover inventories from previous quarters, limiting the upward momentum of prices. Demand across the board was weak, hindered by reduced animal protein output and conservative procurement strategies in the chemical sector. In March, supply constraints persisted amid unplanned cracker outages and persistently high propylene prices. Demand conditions showed little sign of improvement, with consumer confidence still trending downward. Compounding the issue was the exclusion of butyric acid from newly approved EU feed additive regulations, which diminished hopes of a near-term recovery in demand. Prices stabilized but remained vulnerable to both upstream volatility and downstream inertia.

In the Asia-Pacific region, butyric acid prices displayed mixed trends over the quarter, with a net change that was largely neutral. January and February saw a cumulative price increase of about 2.5%, supported by production cuts and rising feedstock costs. Producers like Perstorp and OQ Chemicals announced price hikes, but the market response was lukewarm due to ample inventories and subdued downstream activity. In China, slightly higher propylene prices and reduced operating rates at propane dehydrogenation (PDH) facilities contributed to moderate supply pressure. However, demand from animal feed and chemical intermediate sectors remained weak, and consumer activity showed little improvement despite marginal consumer price index growth. February trading was dampened by Lunar New Year celebrations and persistently poor export demand. China's Purchasing Managers’ Index (PMI) dropped to 49.1, indicating a contraction in industrial activity and reflecting weak butyric acid consumption. In March, the market reversed earlier gains, with prices declining due to improved PDH operations and lower feedstock costs. Inventories rose as port congestion eased and supply levels normalized. Domestic demand showed slight improvement, bolstered by policy support measures and holiday-related consumer spending. Nevertheless, exports to Southeast Asia remained slow, particularly during the Ramadan season, which constrained broader market recovery. Sentiment remained bearish, and pricing momentum faltered in the absence of strong demand-side drivers.

Across all regions, the butyric acid market in Q1 2025 was marked by a delicate balance between supply-side constraints and weak demand fundamentals. While production disruptions and feedstock volatility provided temporary support for prices, lackluster consumption in core application sectors limited sustained upward movement. The animal feed industry, a major consumer of butyric acid, remained under pressure globally due to issues such as low corn output in North America, disease outbreaks in Europe, and weak protein demand in Asia. Meanwhile, the food, flavoring, and chemical intermediate sectors failed to provide meaningful support, constrained by cautious consumer spending and slow industrial recovery. As a result, pricing trends largely reflected regional supply imbalances rather than genuine demand revival, indicating a market still in search of stronger fundamentals. Looking ahead, the trajectory of butyric acid prices will likely depend on improvements in agricultural yields, recovery in global consumer sentiment, and stabilization of upstream raw material markets.

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