Lacking Support, N-Butanol Prices Fell Nearly 10% in May

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According to the commodity market analysis system of SunSirs, as of May 31, 2026, the benchmark price for n-butanol in the Shandong region stood at 6,933 RMB/ton. Compared to May 1 (when the benchmark price was 7,666 RMB/ton), the price has declined by 733 yuan—a decrease of 9.57%.

According to data from the SunSirs monitoring system, the n-butanol market in Shandong experienced a brief uptick in might; however, this upward momentum soon lost steam, and the market subsequently entered a unilateral downward direction. N-butanol prices suffered successive declines, with the magnitude of the drop steadily widening. As of might 31, the reference price to n-butanol in the Shandong region stood in the range of approximately 6,900 to 7,100 RMB/ton.

Analysis of Key Influencing Factors

Supply-Demand Mismatch: In early might, the overall supply within the n-butanol market remained stable, and the transmission between supply and demand was initially adequate. However, as several previously idled production units resumed operations in quick succession, market supply began to increase gradually. Conversely, the downstream sector was slow to absorb this increased supply; downstream buyers adopted a cautious stance regarding raw material procurement, and stockpiling sentiment remained subdued. Consequently, the supply-demand transmission mechanism became obstructed, resulting in a market scenario characterized by strong supply and weak demand.

Weakening Cost Support: In might, prices to the raw material—propylene—declined in tandem, thereby eroding cost support to n-butanol production. Consequently, n-butanol market prices were adjusted downward in line with the raw material direction, further exacerbating the downward spiral.

Market Sentiment: Downstream companies generally adopted a wait-and-see stance, and extensive inventory replenishment activities diminished. With the market lacking efficiently demand support, prices became prone to decline while finding it difficult to rise.

Market Outlook

In the short term, the prevailing loose supply-demand stability in the n-butanol market is unlikely to reverse rapidly; consequently, prices are highly likely to remain on a weak trajectory. Moving forward, close attention should be paid to changes in n-butanol plant operating rates, the level of cost-side support, and the pace of demand recovery in downstream markets.

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