Holidays keep market participants cautious

Chinese domestic losses weigh on NBA, 2-EH

Producers mull lower export volumes

The Asian oxo-alcohols import markets were thinly traded in the as holidays led buyers to await China's and South Korea's return to the market for clarity as regards downstream demand before making procurement decisions.

China was shut for the extended National Day and Mid-Autumn holiday from 1-8 October, and South Korea remains out of action in early October for Chuseok festive celebrations.

Asian normal-butanol (NBA) import markets were generally weighed down by falling Chinese domestic spot markets. 

Poor margins in the derivative butyl acrylate and butyl acetate markets continue to limit affordability levels. 

Similarly, 2-ethylhexanol import markets softened on the back of weaker Chinese domestic values. 

With a large amount of new capacities coming on stream from end-October/November onwards, market sentiment remained bearish.

Sellers were unwilling, however, to offer exports at Chinese domestic parity levels as they underlined that they would rather lower operating rates instead. 

Some producers mulled higher run rates at downstream units, in a bid to manage regional balances.

For the iso-butanol (IBA) spot markets, few discussions materialised in the week. 

A general lack of restocking interest and margin considerations led to a thinly-traded market.