What drove the 219% surge in China's 1-butanol prices and record margins?

China's 1-butanol market saw an unprecedented rally from March 2020 to July 2021, with cumulative gains exceeding 219%. The national average price peaked at 16,067 yuan/ton on May 13, 2021, surpassing the previous 11-year high of 13,950 yuan/ton. While feedstock propylene also rose, its gains lagged far behind, pushing production margins to a decade-high of 50.1%. This divergence marked a structural shift from historical patterns where butanol typically traded below propylene. The price spike reflected tight supply conditions and strong downstream demand recovery, particularly from acrylate esters and solvents sectors, creating a rare profitability window for producers.