Why do regional n-butyl acetate prices in China diverge and what drives producer profitability?

Regional price spreads between Shandong and Jiangsu, normally 200-300 yuan/ton, narrowed to just 100 yuan/ton by early December 2022. The compression stemmed from cost-side shifts, with feedstock prices falling sharply. Theoretical production margins stayed below 400 yuan/ton since October, with Shandong producers earning under 150 yuan/ton versus Jiangsu's roughly 220 yuan/ton. The profitability gap traces to differing n-butanol costs, which dominate the cost structure. Producing one ton of n-butyl acetate consumes about 0.64 tons of n-butanol versus 0.52 tons of acetic acid, and since n-butanol prices far exceed acetic acid, regional n-butanol procurement costs become the decisive factor in margin competitiveness.