ICIS - chemical podcasts Episode 1418: PODCAST: Europe oxo-alcohols and derivatives markets focus on destocking into year end
Dec 22, 2025
December sees a quiet spell in the European oxo-alcohols and derivatives markets, marked by ample supply and a noticeable lack of demand. Insights reveal stable propylene costs and a softening butyl acetate market as major producers adjust supplies. Skepticism looms over a potential demand recovery by 2026, with ongoing geopolitical tensions and infrastructure uncertainties. Factors like low inventories and changing buyer behavior are reshaping market dynamics, while margin pressures and import competition pose challenges for European producers.
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Year-End Destocking Keeps Markets Quiet
- European oxo-alcohol markets saw subdued December activity as players focused on year-end working capital and 2026 contract talks.
- Supply stayed ample across grades, keeping spot prices broadly steady with little momentum to move.
Butyl Acetate: Soft Then Stabilising
- Butyl acetate weakened in early December on weak demand then stabilised as trading dried up in the second half of the month.
- Supply remained ample from major producers and Chinese imports into Europe eased due to a narrowed arbitrage.
Flat End-User Demand Constrains Recovery
- Downstream sectors like construction and automotive are expected to remain flat in 2026, limiting demand recovery prospects.
- Geopolitical uncertainty and economic weakness continue to cap growth for oxo-alcohol derivatives.