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India’s iso butanol availability in 2026 is estimated at approximately 190 to 250 thousand tonnes, supplied through a combination of domestic production and imports. Local output is closely tied to oxo alcohol complexes that convert propylene into mixed alcohol streams, with iso butanol often produced alongside n butanol and other C4 alcohols.
Supply growth follows downstream coatings, adhesives, and chemical intermediate requirements rather than independent iso butanol capacity expansion. Operating rates are influenced by propylene availability, oxo synthesis balance, and derivative demand prioritisation within integrated plants.
Production economics reflect propylene pricing, synthesis gas efficiency, catalyst performance, and separation costs. Imports remain relevant for balancing grade availability, managing maintenance downtime, and addressing regional supply gaps.
Downstream buyers increasingly seek predictable supply, consistent impurity profiles, and alignment with solvent and esterification performance requirements.
Solvent and esterification grades account for the majority of consumption due to steady demand from coatings and adhesives. Buyers prioritise water content control, low aldehyde levels, and consistent boiling range.
Integrated oxo producers achieve higher reliability and cost stability. Standalone units face greater exposure to propylene price movements and logistics coordination.
Coatings represent the largest consumption segment due to solvent performance characteristics. Chemical intermediates provide stable secondary demand linked to ester and acrylate chains.
Western India anchors domestic production due to propylene access, oxo alcohol units, and proximity to coatings manufacturers.
Southern India represents a major consumption hub for paints, adhesives, and industrial solvents, supplied through domestic logistics and imports.
Northern India shows strong demand from construction related coatings and chemical processing.
Eastern India remains a smaller but developing consumption zone tied to industrial expansion.
The supply chain begins with propylene sourcing, followed by oxo synthesis, separation, storage, and distribution in bulk tankers and drums. Cost formation reflects propylene pricing, synthesis efficiency, catalyst life, energy use, and logistics.
Imports supplement domestic availability and are influenced by global oxo operating rates, freight conditions, and terminal capacity. Buyers often combine domestic contracts with import options to manage continuity and specification risk.
The ecosystem includes propylene suppliers, oxo alcohol producers, coatings companies, adhesive formulators, ester manufacturers, logistics providers, and regulators. Strategic positioning depends on integration depth, supply diversification, and downstream qualification strength.
Key themes include tighter solvent specifications, increased focus on supply resilience, and closer coordination between oxo producers and derivative manufacturers.
India’s iso butanol availability in 2026 is estimated at approximately 190 to 250 thousand tonnes from domestic production and imports.
Iso butanol is typically produced as part of mixed alcohol streams in oxo synthesis, making its availability dependent on overall oxo operating strategy.
Coatings and solvent applications account for the largest share, followed by esterification and chemical intermediates.
Key drivers include propylene pricing, catalyst performance, separation efficiency, energy use, and logistics.
Buyers rely on diversified sourcing, long term contracts, inventory buffers, and selective imports.
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India Iso Butanol Production Capacity and Growth Outlook
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