ICIS - chemical podcasts
Episode 1284: PODCAST: New oxo-alcohols capacities in China to impact sentiment in 2025
Dec 17, 2024
The podcast delves into the effects of expanding oxo-alcohols capacity in China, highlighting challenges in the market and weak demand from the plasticisers sector. It discusses domestic production surges, the impact on import demand, and export strategies amidst oversupply pressures. Insights into how construction sector obstacles are influenced by population trends and government initiatives provide a comprehensive view. Additionally, fluctuations in propylene prices could reshape industry margins as 2025 approaches.
06:12
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- China's expansion of oxo-alcohols capacity will lead to oversupply and decreased domestic prices, prompting a focus on export opportunities.
- Challenges in the construction sector and consumer caution will hinder demand recovery, impacting the overall oxo-alcohols market outlook.
Deep dives
Impact of Capacity Expansions on Domestic Production
Chinese capacity expansions in the OXO alcohols market are projected to significantly increase domestic production, reaching a record high of 1.3 million tons per year in 2024. This surge in capacity has led to a notable decline in domestic prices, with local export prices decreasing over 30 percent and butanol prices falling by approximately 15 percent since early 2024. As producers in China face oversupply pressures, seeking export opportunities will become crucial to mitigating local competition. Companies that either possess geographical advantages or are integrated with downstream plants are likely to focus on establishing their own export channels to maintain market presence.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
