Ascending Crude Oil Prices leads to a Hike in the Global Tertiary Butyl Alcohol market

The prices of Tertiary Butyl Alcohol displayed an upsurged in the global market due to spiked Upstream Crude oil prices. The ongoing geopolitical clash between Russia and Ukraine has already become a concern for the global players in Crude oil. Traders were affected due to the supply-chain disruptions amid robust demand from the international market, which has forced the crude oil prices to fluctuate, reaching around USD 120 per barrel.

Furthermore, strong demand for Tertiary Butyl Alcohol from Paint Industries has been forcing the prices higher in the global market. Tertiary Butyl Alcohol is utilized as a solvent in the pharmaceutical industry.

As per the ChemAnalyst database, the costs of Tertiary Butyl Alcohol FOB Marl Germany were settled around USD 1340 per tonne, while in India CFR JNPT, it was assessed around INR 134400 per tonne.

The Russia–Ukraine crisis has resulted in a sharp uptick in the Upstream Crude oil prices and feedstock Acetone, which resulted in a difference in the market dynamics. In Germany, the prices of Tertiary Butyl Alcohol have risen due to increased demand from the downstream as the paint remover in the paint industries has kept utilization volumes high. The total pricing of t-butanol has been affected by restricted supply and high upstream Crude oil prices.

Moreover, for many paints firms, the hike in prices of t-butanol increased the input costs, affecting their earnings and margins. In addition, Indian paint manufacturers such as Asian Paints and Berger Paints have increased their pricing to offset the impact of expanding raw material costs.

As per ChemAnalyst, “Tertiary Butyl Alcohol is expected to increase in the upcoming weeks as the downstream demand for t-butanol in the paint industry is not likely to settle shortly. In the meantime, Upstream crude oil is also forecasted to rise, which will also stimulate buoyancy in the product prices across the global market.