Propylene glycol n-butyl ether

Market Intelligence Report for 3-Butoxy-1-propanol (June 2026)

I. Price Trends
1. Latest Quotations
– As of June 22, 2026, Jinan Jirihe Chemical Co., Ltd. quoted RMB 12,200 per metric ton (tax-inclusive, packaged in 180-kg drums, GB standard purity ≥99.9%, delivery location: Jinan City, Shandong Province).
– This quotation is valid for 7 days. Prices have remained stable at RMB 12,200/ton over the past month (quoted on June 3, 11, 16, 17, and 22), with no fluctuations observed.

2. Historical Comparison
– The quotation was RMB 12,000/ton on January 8, 2026; prices gradually increased to RMB 12,200/ton by late February and have since remained unchanged.
– Prices were consistently stable at RMB 12,000/ton throughout the second half of 2025; the modest uptick in early 2026 reflects adjustments driven by raw material cost changes or demand shifts.

II. Supply-Demand Analysis
1. Supply Side
– Key Supplier: Jinan Jirihe Chemical Co., Ltd. remains the dominant domestic supplier, with stable production capacity and no public announcements regarding plant shutdowns or capacity expansion.
– Regional Distribution: Shandong Province serves as the primary delivery hub, offering clear logistics cost advantages and strong coverage of North China and East China markets.
– Inventory Levels: No specific inventory data has been disclosed; however, price stability suggests a balanced supply-demand relationship without significant inventory pressure.

2. Demand Side
– Downstream Applications: Primarily used in coatings, inks, and cleaning agents—industries highly correlated with overall industrial production activity.
– Seasonality: June is traditionally a low-demand season; yet the absence of price erosion reflects either underlying demand resilience or effective pricing control by suppliers.
– Substitution Effects: Propylene glycol butyl ether (PGB) partially substitutes for 3-butoxy-1-propanol; however, PGB prices have not moved in tandem, indicating limited substitution impact.

III. Cost Structure and Profitability
1. Raw Material Costs
– Primary feedstocks are propylene oxide and n-butanol. Prices for both remained relatively stable during H1 2026, providing steady cost support.
– Energy costs (electricity and steam) have not surged significantly, keeping overall production costs under control.

2. Profit Margins
– Based on the current quotation of RMB 12,200/ton, gross margins are estimated at approximately 15–20% (calculated using industry-average cost structures), reflecting healthy profitability.
– Suppliers show no incentive to initiate discount promotions—further corroborating market equilibrium.

IV. Regulatory and Industry Environment
1. Environmental Regulations
– Environmental oversight for chemical enterprises in Shandong Province has intensified; however, Jinan Jirihe Chemical has not suffered operational disruptions from regulatory penalties. Its most recent administrative penalty occurred in February 2026 and has since been rectified.
– Overall industry compliance costs are rising, but these have already been absorbed and passed through via pricing.

2. International Trade
– No import/export data is available; the domestic market operates predominantly on self-production and self-consumption, with minimal exposure to international price volatility.

V. Outlook (July–August 2026)
1. Price Forecast
– Short Term (1 month): Prices expected to remain unchanged at RMB 12,200/ton, supported by balanced fundamentals and absence of sudden cost shocks.
– Medium Term (3 months): Should downstream industries enter peak season (e.g., coating sector pre-stocking in September), prices may test an upward range of RMB 12,500–12,800/ton.
– Key Risks: A sharp spike in propylene oxide prices or an unexpected collapse in end-user demand (e.g., due to macroeconomic slowdown).

2. Supply-Demand Evolution
– Supply Side: No new capacity additions are planned; existing facilities are projected to operate at 80–90% utilization.
– Demand Side: July–August remains seasonally weak, but emerging sectors—including new energy and electronic information—may partially offset seasonal softness.

3. Strategic Recommendations
– End Users: Procure based on immediate requirements; speculative bulk purchasing is discouraged. Long-term contracts may lock in current pricing advantageously.
– Suppliers: Maintain current pricing, closely monitor raw material cost trends, and prepare proactively for potential peak-season demand.
– Traders: Adopt light-position strategies; avoid buying at elevated levels; consider regional arbitrage opportunities where price differentials exist.