Acetaldehyde Prices Surge in the Global Market
- 08-Jun-2022 4:55 PM
- Journalist: Robert Hume
Rising raw material cost amidst the ongoing Russia-Ukraine geopolitical war has impacted the overall market dynamics for all commodities, notably, Acetaldehyde across the global market during the past few months.
As per the latest insight, the market trend of Acetaldehyde has witnessed an upward trend in the European market, backed by the limited availability of the material. The rising demand from the end-user sector, on the other hand, has contributed to the high price of acetaldehyde.
Similarly, the North American market has shown an increasing pattern due to the soaring energy cost coupled with the labour shortage. As a result, the prices were inclined by 3.7% during the first week of June.
In addition, India, the only market not struggling with any market disruption like Europe or USA, witnessed a significant increase of around 2% in May amidst supply chain disruption from key exporting countries. Since the arrival of the summer season, the Indian market has been experiencing seasonal offtakes from the domestic market. Still, demand from the downstream Food and preservative and textile sectors has remained strong.
Moreover, it’s heard that traders are not offering a discount on purchases, as they are also careful about the availability of the stock. Therefore, the prices were increased by roughly 2.3% in the previous week.
In the Chinese market, the demand for the product has been consistent with the domestic market, while several downstream manufacturers lowered their production due to stable offtakes. Despite all these odds, the Acetaldehyde price has risen by nearly 2% in May while a marginal inclination of around 1.4% in the previous week. Apart from the production activity, Supply Chain disturbance across the domestic market, boosting crude prices, and lowering natural gas imports all contributed to the price surge in the local market.
On the other hand, the South Korean market has been grappling with significant inflationary pressures fuelled by high input costs, despite stable domestic demand fundamentals from the domestic market. According to the recent insight, the producer price index has effectively escalated, resulting in a dramatic increase in consumer inflation, which is almost 14-years high.
According to ChemAnalyst estimation, prices of Acetaldehyde are expected to rise by the end of this month due to the current market scenarios. As China has started retrieving from the Covid and its subvariant, the demand from the downstream sector will be expected to increase. Meanwhile, in North America and Europe region, the surging Energy cost might impact the prices of Acetaldehyde.