What is driving the recent rebound in China's isooctyl alcohol prices?

China's isooctyl alcohol market has seen a notable price rebound since Q3 of the current year, primarily due to supply-side constraints. Several plants have undergone scheduled maintenance or unplanned shutdowns, tightening availability at a time when inventories were already at low levels. This supply squeeze occurred after a period of low-price volatility from H2 2022 through H1 2023. The market structure remains dominated by the oxo synthesis route using propylene as feedstock, with major producers integrating upstream. Domestic capacity has grown to make China the world's largest producer and consumer, with operating rates above 90%. Import dependence has fallen, though exports saw a significant uptick in 2022, reflecting shifting trade flows in the Asian region.